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*$200,000 mortgage for $505.71 per month. This is a "Neg Am" loan a.k.a Option ARM loan, which is a deferred-interest loan. This is a very powerful and flexible loan program, however, the most misunderstood because of its many options. Basically, the lender allows the borrower to make monthly payments that are less than the accruing interest. Therefore, if the borrower chooses to make the minimum monthly payment, the loan balance will increase by the amount of interest not paid on the loan. The advantage of this loan lies in the borrower's ability to choose between making the full loan payment, or the minimum payment, or any amount in between. If a borrower's income varies throughout the year (due to commissions, bonuses, etc.), the borrower can make a lower payment during the lean times, and then make higher payments when funds are readily available. In the example above the minimum monthly payments is based on a $200,000 loan at 1% interest rate for a 40-year term. The A.P.Rs (Annual Percentage Rate) may vary among the participating lenders on the LoanGetter.com lender network. LoanGetter.com is not the lender in any transaction. The rates and terms you are offered are the responsibility of the participating lenders to whom you are matched. You may not be matched with the lender making this offer.
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