Alternative Mortgage Program
There are still many alternative mortgage programs available to consumers. Some of the more common names of these aggressive mortgage programs are: Pay Option ARMs, Smart Choice Loans, Smart Loans, Interest Only Loans, Pick A Payment Loan, 1 month Option ARM, 12 month MTA Pay Option ARM, Cash Flow Option Loan, Option ARM, Choice Option Loans, Choose a Payment Loans, Secure Advantage, and many others.
Some aggressive mortgage programs were sold to the wrong types of borrowers within the last 3 or 4 years. Because of uneducated consumers who only made minimum payments on their loans some borrowers now have mortgage balances that are now higher then the house is worth.
An aggressive mortgage program is one that uses more leverage or makes a lower payment than usual. These loans can be well suited for borrowers with stable income, high assets or consistent cash flow.
Aggressive mortgage programs are available in all shapes and sizes, and can be viewed as aggressive for the investor (lending more money against a home than they would otherwise, with a low monthly payment) or aggressive for the borrower (deferring interest, making a small down payment).
Many aggressive programs such as the pay option arm, and other interest only loan products are ideal for investors who seek to maximize cash flow while obtaining the lowest cost mortgage that suits their investment strategy.
Many aggressive loan programs are beneficial for those who receive large annual bonuses as part of their compensation package. Many executives enjoy a low monthly payment and can make an annual lump sum payment to their mortgage to pay down the balance. This allows for effective household budgeting during the course of the year.
One of the most aggressive mortgage programs created was the Minimum payment option arm. This program allowed 4 option payments and included negative amortization for those who wanted the ultimate in leverage.
Available Mortgage Loan Products
Purchase Transactions including first and second trust mortgages
Refinance Transactions for Rate and Term as well as Cash-Out Refinances
Stand-Alone Second Mortgages (Home Equity Loans -HELOAN and Home Equity Lines of Credit -HELOC)
Government Loans such as VA and FHA
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