Save thousands in interest

Our new SAFE EQUITY ARM is saving our clients tens of thousands in interest expense, in some cases hundreds of thousands over the life of the loan.

Most lenders don’t explain that a 30 year fixed rate mortgage can be expensive.  The reason is that the loan is “front loaded” with interest with a rate that is the highest in the market.

 The way it works is that your payment is the same each month, but the amount going toward interest is disproportionally large compared to the amount going to pay down interest in the early years of the loan.  There are only 2 ways to combat this–make extra principal payments each month or lower your interest rate in the early years of the loan.  

We don’t think our clients should need to make extra payments, so we invented a loan with a very low rate for a very long time.  Not only do you save interest by lowering your rate, but what is amazing is the percentage of your mortgage payment applied toward principal increases exponentially with lower rates.This allows you to chunk away huge amounts of principal in the early years of the mortgage.

We call it the SAFE EQUITY ARM.  Yes, this is an adjustable rate mortgage (ARM), but unlike any other ARM, this is also “SAFE” by capping the most the rate can change in any period and over the life of the loan.  This structure is far more beneficial than a 30 year fixed loan and has some safety features built in, making it different than the ARMs you may be familiar with. 

The example below shows principal reduction and interest savings for a typical 30 year fixed @ 5.000% vs. our SAFE ARM.  These are our actual rates with our loan.  And you are making full principal and interest payments–there in no negative amortization.

This is the beauty of our loan.  We are letting you make enormous principal payments in the early years of the loan.  Why do we offer this?  We want our clients to continue doing business with us by staying in our loan and never finding the need to refinance.  With this loan, we can make that possible.

Nervous about adjustable rate?  That is a fair concern particularly with the exotic ARMs that entered the marketplace in recent years.  But this is where the word SAFE comes in to play.  Our start rate is between 1.625% and 2.125% and increases only .5% every 6 months.  The interest rate with never exceed 6.25% to 6.75%. 

Regardless of the time period we analyze (i.e. 5, 7, 8, 30 years..), the SAFE ARM saves you interest over any other ARM or 30 year Fixed Rate. Take a look at a comparison of our SAFE EQUITY ARM and a typical 30 year fixed loan. 

To highlight some of the unique features once again:

• 1.625% start rate–only adjusting by .5% every 6 months until it hits 4%.  Then it adjusts to index plus margin with a periodic cap of .5% at each adjustment.  In a nutshell–This loan will take 2.5 years to get to 4% and then it will stay between 4.00% and 6.25% for the life of the loan.
• By taking advantage of these low rates, payments in the early years of the loan result in a much higher priciple reduction than a typical 30 year fixed.

For a no obligation quote and comparison, For more information click here