| This type of loan is a minimum payment option loan. | | | | A $600,000 mortgage would have 0.25% mortgage |
| This loan type of explained later in this article. | | | | payment rate would be $125 per month for the initial |
| With the 0.25% mortgage loan you have the option to | | | | minimum payment rate time (usually 5 years). |
| make a very low payment. | | | | A $700,000 mortgage would have 0.25% mortgage |
| This type of loan usually requires a property that has | | | | payment rate would be $145.83 per month for the initial |
| at least 30% equity in it. For example, a property that is | | | | minimum payment rate time (usually 5 years). |
| worth $400,000 with a loan of $280,000 has a loan to | | | | The minimum payment option loan type offers a |
| value ratio of 70% ($280,000/$400,000 = 70%). This | | | | borrower the option to choose a monthly payment |
| property has enough equity to be considered for this | | | | from several options. This choice is usually offered for |
| type of loan. | | | | the first 5 years of the mortgage loan, at which time |
| The minimum payment rate on this 0.25% mortgage | | | | the loan reverts to a normal loan. |
| loan is factored as an interest only loan at a 0.25% | | | | The loan options are usually a regular 30 year loan |
| payment rate. | | | | payment, an interest only payment, or a minimum |
| A $200,000 mortgage would have 0.25% mortgage | | | | payment. |
| payment rate would be $41.67 per month for the initial | | | | The minimum payment is usually far below the interest |
| minimum payment rate time (usually 5 years). | | | | rate payment. This allows a person to make a |
| A $300,000 mortgage would have 0.25% mortgage | | | | "minimum payment". Any amount short of the interest |
| payment rate would be $62.50 per month for the initial | | | | only payment is added onto the principal of the loan |
| minimum payment rate time (usually 5 years). | | | | and is known as "negative amortization". If an interest |
| A $400,000 mortgage would have 0.25% mortgage | | | | only payment is $1,000 and the minimum payment is |
| payment rate would be $83.33 per month for the initial | | | | $500, if you make a $500 payment then the |
| minimum payment rate time (usually 5 years). | | | | difference ($500) is added onto the principal. |
| A $500,000 mortgage would have 0.25% mortgage | | | | This type of loan would have an APR of at least 7.5%, |
| payment rate would be $104.17 per month for the initial | | | | although this may vary depending on your specific loan |
| minimum payment rate time (usually 5 years). | | | | scenario (30 year loan term, closing costs, etc. |