The loan amortizes every 14 days saving you money. Every year, your payment will increase by a MAXIMUM of 7.5% of the payment, NOT the balance. The 7.5% is not an increase of the rate, just the payment.

The start rate shown on this program is at 3.4%. You can start at as low as 1.25%, but we suggest the 3.4% rate to eliminate any negative amortization. As you can see it can easily save you thousands of dollars compared to a fixed rate program.

How the rate is calculated:
The rate is calculated by the COSI index (Cost of Savings Index). This is what banks pay on checking, savings and CD accounts (current average is 2.18%). To this index, a margin of 3.4% is added to reach the fully indexed rate of 5.58%.

This lender is a portfolio lender and they never sell your mortgage. They allow you to start at the lower 3.4% to give you extra cash flow throughout the first years of the mortgage. Should you want to pay anything additional, just send it in at the end of the month with the coupon that you will receive in the mail. If you have any questions, please call 1-800-383-8070 a representative would be happy to help you.