Pay Option Advantage

Lower Your Mortgage Payment by Over 50%

Who's this loan right for?

The Pay Option Advantage loan is for homewners who want the flexibility of choosing from four different payment options every month, plus the security of a low fixed rate for years.

Overview

• Low Payment Options
• Interest Rate Fixed for Years
• No Pre-Payment Penalty

Extra Cash Flow

The Pay Option Advantage lets you choose which payment you want to make: a 30- or 15- year fully amortizing payment, an interest-only payment, or the minimum payment. You pick the one that works best for you and your budget.

Financing with Security

The Pay Option Advantage loan gives you an incredibly low fixed interest rate or the first five or seven years, during which time you can choose between four different payment options. After that, your payments will convert to an interest only payment that eases up at a reasonable pace so you don't experience payment shock like you do with other option ARM mortgages.

No Pre-Payment Penalties

US Mortgage Capital allows you to pay more toward your mortgage than the standard principal and interest with absolutely no pre-payment penalties.

Payment Options

Each month, you can select one of four mortgage payment options that best fits your needs - the minimum payment, the interest-only payment, the 30-year fully amortizing payment or the 15-year fully amortizing payment. You pay the amount you want, as long as your payment is at least your minimum payment amount. Plus, your interest rate is fixed for the first five years or seven years.

Minimum Payment

• The minimum payment is designed to provide you with up to 50 percent lower than a standard principal and interest mortgage payment.
• Your minimum payment is calculated based on your interest rate minus three percent for the first five or seven years.
• This option is available for the first five or seven years, or until the loan reaches the maximum limit of 115% ( New York is 110%), whichever occurs first.
• If you reach your maximum limit, your minimum payment automatically converts to an interest-only payment.

Interest-Only Payment

• The interest-only payment is the minimum amount required to repay the full interest that is due each month based on the current rate and current loan balance.
• Interest-only payments can be made anytime during the first 10 years of the loan.
• After the tenth year, the loan becomes a fully-amortizing six-month adjustable rate mortgage with a 20-year amortizing period.

30-Year Amortization Payment

The 30-year amortizing payment is the amount needed to payoff your loan in 30 years, based on the initial fixed interest rate and current loan balance.

15-Year Amortization Payment

The 15-year amortizing payment is the amount needed to payoff your loan in 15 years based on the initial fixed interest rate and current loan balance.

About the Minimum Payment

Why is the minimum payment so low?

The minimum payment is the lowest of the four payment choices available. When you choose to pay the minimum payment, you're paying less than the full interest that is due for that month. By deferring your interest, the unpaid interest is added each month to your outstanding principal loan balance.

If you defer payment of interest, your outstanding loan amount could exceed the value of your home. This may affect your ability to refinance your loan or sell your home since you will owe more than what your home is worth. A higher loan amount may also result in larger payments down the road.

What are the benefits of such a low minimum payment?

Everyone's situation is different, but here are some examples of when you might choose the minimum payment option to increase your cash flow:

• If you're paid on commission or tips, your income fluctuates from month to month, or if you live in a high-cost housing area, and you need to pay off other bills.
• If you experience a sudden financial emergency and need more money to during that time.
• If you wanted to make a high-return investment, put money aside for your children's college tuition, contribute more toward your 401k plan, or buy an investment property.

The Pay Option Advantage Loan vs. Other Option Arms

Why are we different than other Option Arm Mortgages?

Other "option ARM" mortgages with deferred interest (which is also known as negative amortization) offer a teaser rate as low as one percent for the first month. The interest rate on these mortgages adjust monthly and because of that, you could be paying an interest rate that is 7.5 percent or higher. Then, when your option ARM recalculates, your payment could go up 200-300 percent! And that's where trouble can start - but not with the Pay Option Advantage!

With the Pay Option Advantage loan your rate and payment are fixed for the first five or seven years! You get the same payment flexibility of an option ARM by choosing between four different payment options. But because your rate is fixed, you won't suffer the payment shock you get with other option ARM mortgages.

Plus, US Mortgage Capital allows you to refinance or pay off your mortgage early with absolutely no pre-payment penalties. In fact, US Mortgage Capital is the only lender in the country who offers a FREE REFINANCE PROGRAM .

If rates drop after you close you can refinance to the lower rate WITH NO CLOSING COSTS!

Compare Monthly Payments