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Educational Product Overview:

To calculate your monthly payment at 1.95%, you must multiply your loan amount by 3.7. (  100k times 3.7 =$370. principal and interest

The product may seem complicated initially, but it's really not that difficult to master. We close approximately 40% of our general presentations and 70% of our referrals. Skip to Part 3,if you don't need the technical breakdown on the product at this time. The product sells and it's really not rocket science.

A payment comparison of the 1.95% one month ARM plan (3.45% APR. ) to a 6.875% fixed plan for a $275,000. loan amount on a 30 year note:

Monthly principal and interest payments for five years: .

The four columns below represent the followings:
2.45% payment:- 6.875%fixed payment: - Monthly saving: Yearly Saving:

Year 1: $1,079.mo. -- $1,807.now-- =$728.= $8,736./1st year saving

Year 2: $1,159.mo.-- $1,807.now -- =$648. = $7,745./2nd year saving

Year 3: $1,245.mo. -- $1,807.now-- =$562.= $6,714/ 3rd year saving

Year 4: $1,338. mo.-- $1,807.now-- =$469.= $5,591./4th year saving

Year 5: $1,438.mo. -- $1,807.now -- =$369.= $4,735./5th year saving

Total savings: $ 33,155.

If total savings for 5 years were invested at 8% for 30 years, and you quit the loan, the total accumulated in that account would be $275,698.which exceeds the original loan amount. You are actually creating a nest egg from a mortgage!

The following balances of the above loan are based on current fully indexed rates ( 4.857%) and the 1.95% ARM product on a Bi-weekly option.

Balance on the 1.95% plan: year 5: $265,345. and yr.10: $234,504.
Balance on the 6.875% plan: year 5: $258,513. and yr.10: $235,286.

The above approximate ARM comparison is based on a MTA index which changes monthly and has an approximate 5.5% ten year history. Starter rates and fully indexed rates vary and this is not an offer to lend. Certain restrictions and conditions apply and your actual APR may vary. Complete presentations presenting the pros and cons of this program are required before applications are submitted. This program is a payment driven, cash flow product not suitable for all clients. Various lenders have different programs and this website is simply an introduction to the one month arm concept for potential loan officers.