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Option ARM (MTA, COFI, COSI, CODI & LIBOR) overview:

AAMI believes the Option ARM's "Minimum" and %-Only pmt. can help us all to:

  1. 1. Pay-off debt (including our house) faster by increasing mo. cash-flow

  2. 2. Put more money into savings portfolio

  3. 3. Maintain a good credit rating even with loss of income

  4. 5. Lower your future mortgage payments w/o refinancing

The Option ARM mortgage offers the lowest monthly payment in the USA; there are seven (8) basic elements you must compare for all Option ARMs, i.e.:

  1. Starting Rate

  2. Margin - (fixed for the life of your loan)

  3. Life Cap

  4. Index - (changes monthly)

  5. Pre-pay penalties

  6. Recast provisions

  7. Closing cost

  8. Yearly 7.5% Payment Cap

There should be one more called APR, but unfortunately you cannot compare the Annual Percentage Rate with an Option ARM. Below is our Rate Sheet which has the "base" Starting Rates, Margins, and Life Caps


All Option ARMs basically work the same way with 30 & 40 year term, a yearly 7.5% payment cap, fixed Margin, monthly Index, Life cap, and five payments options, i.e.:

  • Minimum payment

  • Interest-only payment

  • Fully-Indexed (Index + Margin) payment

  • 15 yr. payment

  • Pay any amount over the "Minimum" pmt. - This option on your monthly statement is always left blank

Read more about these 5 pmt options

With this said, our job is to quickly breakdown the similarities and the differences between all five Option ARM programs, e.g.:

  • Which Index moves the slowest

  • Which offers the lowest Margin and "fully-indexed" Rate (Index + Margin)

  • Which offers the lowest Life Cap, Starting Rate & "Minimum" pmt.

  • Which program offers the easiest guidelines and approvals
     

The MTA and COFI programs are usually neck and neck as the best mtg. programs in the Nation; however, as of 04/2007 the COFI has dropped 4 months in a row and still is the slowest and safest moving Index (see how each Index moves.) With this said, because there are so many different mortgage scenarios, the MTA index still might offer a lower fully-indexed rate than the COFI as it always offers a lower Margin.  My suggestion is to read and understand how both Indexes move and then ask for a Margin quote for your particular situation. A good rule of thumb is the longer you will be staying in your home, the lower you will want the Index average, i.e., COFI.  Less than 5 yrs., you'll most likely want a lower Margin hence the MTA program.  Therefore, when you are ready, if you will provide the following info via an e-mail:
 

     

        Refinance:

  • Where your house is located, i.e., State?

  • What is the est. Market Value?

  •  How long have you owned this property?

  •  Est. $ amount interested in borrowing?

  •  Primary, 2nd home, or Investment property?

  •  Est. Credit score?

  •  How many more yrs. planning on keeping home?

Purchase:

  • Where your house is located, i.e., State?

  • Sales Price?

  • Down payment, e.g., 10% ,20% ?

  • Primary, 2nd home, or Investment property?

  • Credit score?

  • How many yrs. planning on keeping home ?

We should be able to beat (i.e., offer lower Margins & or fees) on any offer over $200k; pricing & APR subject to change without notice. What you will find on this Rate Sheet is a template or a "Base"  for the Start Rate, Margin & Life cap.)  However the "add-ons" or "reductions" to the "Base Rate" if applicable (e.g., cash-out, low doc., stated-income, high LTVs, low FICOs, etc.) are not listed; therefore, the best way to find out your particular Start Rate, Margin and Life Cap & Closing Cost would be to either e-mail a detailed request, or fill out our Short Form (we do not need to pull your credit at this stage; just estimate your FICO scores.)

To see if you qualify for a Option ARM loan, fill out our "complete"  Loan Application  and we will send you a Good Faith Estimate, Truth-In-Lending Statement and an Amortization Schedule reflecting your next five years of your "Minimum" pmt.  This will not obligate you in any way as we don't take any up-front fees.  Moreover, we will not pull your credit report until you give us the go-ahead via e-mail or phone.

For those already quoted (in writing) from another Option ARM Lender/Broker, fax or e-mail (via PDF) it to us at 888-771-2543 and we will try our best to beat it.  Make sure you put your e-mail address on the fax or PDF so we can e-mail (PDF - Adobe format ) our proposal. 

Again, we'd be happy to e-mail you a detailed "initial" quote/proposal. After you receive our quote(s), if you have any questions, reply via e-mail or feel free to call 800-600-2264 and ask for Greg Hughes; please insure your initial request is detailed for your particular situation.  E.g., 

1.      The State where your house is located.

2.     a.      If a Refinance:

  •  What is the est. Market Value?

  •  How long have you owned this property?

  •  Est. amount looking to borrow?

  •  What mtg. program (e.g., 1.0% MTA-index, no points, etc.) are you interested?

  •  Is this for your Primary, 2nd home, or Investment property?

  •  Credit score?

  •  Will you require a Low Doc. (stated-income) or can you go as a Full Doc. (prove income)?

b.       If a Purchase:

  • Sales Price?

  • Down payment, e.g., 10% ,20% ?

  • Above questions for the Refinance starting with the 4th question


+APR is based upon a $650,000 loan amount and assuming all (estimated) Broker/Lender and Title/Attorney's fees.  The Rates and Points displayed on this page are subject to change without notice. Additional factors that may not have been considered may affect your final rate. This is not a commitment to make a loan, nor is it a guarantee that you will receive these rates or points if you are approved for the loan. Loans above 80% LTV may require mortgage insurance. Rates and points can be locked only after your completed loan application is received and credit is pulled (see locked link for specifics.) All points displayed include origination fees, if applicable, and discount points. If the points displayed are negative you may receive a credit towards other closing costs, however the actual amount of this credit may be limited by underwriting guidelines. The APR indicated reflects our lowest available rate; APR is subject to change as these are all "Option" ARMs. Your rate will vary based on individual credit qualifications, and will be provided by Underwriting upon approval of a completed loan application. Please contact a loan specialist for assistance if you have any questions about rates and points.

Niche products:

   FAST and EASY (NIV/NAV) rates same as full doc!

  • Fast and Easy - Conforming now allows 95 cltv with a 680  
  • Fast and Easy - Jumbo 95cltv to 400K, 80/90 ltv/cltv to 1 Million, 680 Fico
  • Interest Only Fixed Rate 2nds - Better than a HELOC!!!  Works great for Refis, instead of Cash-0ut over 80%, rate and term the 1st and put one of these behind it, usually better blended payment!  Full doc 90cltv is 7.75%, Stated 90cltv is 8.125%
  • 80/20 -  Stated Income Great Pricing on our NC Exp Crit Fixed 30 IO combined with a IO Fixed 2nd, no other better stated 80/20 product on the market.  Purchase/Rate and Term, 6.125% (both payments FIXED and both payments INTEREST ONLY) ask me about the guidelines

  • Full Doc 75/25 - Try our Flex 100 - min credit score of 680. (purchase rate and term)

  • Pay Option Arms - as low as a 1% payment

  • Expanded Criteria stated income as low as a 620 fico, find it under or Non-Conforming products, works with conforming and non-conforming loan balances.

 

 
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