100% Minimum Payment Option Mortgages

The 100% minimum payment option loans offer a borrower a chance to make lower monthly payments than almost any other loan.

Benefit

This is a newer loan that gives a borrower a lot of financial flexibility and the chance to make a smaller monthly payment.

This loan type is available to many different borrowers and many different property types.

DIfferent Loan Options

A borrower who gets this loan will typically have

first 80% is a minimum payment option loan
final 20% is a regular 2nd mortgage loan
The initial minimum payment start rate is around 2%, although it depends on the loan type, the lender, and the borrower's circumstances.

How It Works

A minimum payment option loan allows a borrower to make a minimum payment that is less than the interest only payment. It allows a borrower to make a smaller monthly payment than most other loans.

The loan can be structured on a 30 or 40 year loan term. When a borrower makes a minimum payment, the difference between that payment and the interest only payment is added onto the principal. The minimum payment option is usually available for the first 5 years only.

Credit Types

This type of loan is available for a range of credit types, although it helps to have better credit.

Property Types

This type of loan is available for different property types and in many different locations around the country.