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DISCONTINUED AS OF JULY 2008until further notice from lenders!The
3.25% min. Pick-a-Payment loan - w/ underlying 30 yr.
fixed rateThis loan program is ONLY loan available in 48 states!Current
max loan on owner occuppied is 80% LTV on Purchases need 660 credit w/ Full
Income proof& Stated Income 700A mortgage that makes home buying more affordable. You can increase your cash flow by selecting a very low payment
from the variety of choices available. This flexibility gives you more control over your finances, and your payments remain
much lowers until your loan is re-amortized at the tenth year IF you keep loan . FYI:
National average time mtg is held is 3-5 yrs
You benefit from:
• Very low mortgage
payments in the start-up years
• Increased monthly and yearly cash flow (see example below)
•
Choice of payments each month so you can:
- Make the minimum monthly payment and free up cash
- Increase
the amount and pay off your loan sooner**
*ADVANTAGES
that most lenders just don't offer*
* The CODI mortgage offers the best bi-weekly
payment feature in the business. This bi-weekly feature will automatically pay off a 30-year loan in just 23 years, saving
tens of thousands of dollars, as an end result. One half of the payment will be directly withdrawn from a pre-determined bank
account every 14 days. * The CODI loan does not require escrow accounts for taxes and insurance. This will
result in a lower overall cash requirement at closing. * The Pick-a-Payment - CODI Loan offers maximum
flexibility & COMFORT.
You have multiple payment options every month - pay the:
1) low start up payment
3.25% min. Payment
2) Interest only payment
3) Fully indexed payment
4) 15-year term payment
You MUST make your payment in full every month to keep your home – no payment options!
With the Pick-a-Payment loan
YOU maintain total CONTROL & Flexibility with your cash!
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=============================================================== This program is suspended by all lenders until further
notice due to credit crunch..... Frequently
Asked Questions about the Pick-a-Payment -CODI "Comfort Loan"
WHAT IS THE Pick-A-Payment - "COMFORT
LOAN" CODI ADJUSTABLE RATE MORTGAGE?
This unique home loan is based on the most stable lending index in America,
the CODI (cost of deposit index). The index is the only variable aspect of this adjustable rate mortgage. This is why
the index so important.
The CODI index has remained low and stable because, IT IS NOT based on the fluctuating
economy. The CODI index represents the average of interest rates banks pay to common customers on checking, savings and
CD accounts!
If you have checked your bank statements lately those rates are still depressing. The economic recovery
is under way in year 2000. Have you noticed your bank increasing the rates they pay you on your accounts? This means the CODI
Index and the loans based on the CODI Index adjust only slightly over a long period of time. A fixed margin is added to the
CODI Index to determine the fully indexed rate. It often takes 3-4 years for this adjustable rate product to reach the fully
indexed rate.
1) WHY IS CODI SO STABLE?
After the massive savings & loan bailout in the
late 1980's, the banks have changed the way they earn profits. Banks now earn bigger profits from bank fees rather than the
lending they do with depositor assets. Banks are avoiding many lending outlets due to risk. That means they no longer need
our money to lend out! There is much less competition among banks today. Ten years ago there were over 1750 banks in America.
Today there are less than 430 and the number is dropping.
Consumers use checking and savings account for only
convenient and necessary reasons. Over 40% of the index averages are made of this type of account, and they are the most costly
for the bank to maintain. Banks will always pay less for convenient and necessary accounts.
Certificates of Deposit
Accounts (CD'S) make up the other 60% of the CODI index. Although banks generally offer their highest rates on CD's. They
also serve as an index stabilizer. During an economic recovery CD's rates will improve slightly. However billions of dollars
of CD's were locked in during a sluggish economy when the stock market is most volatile. With a strong economy money market
and stock funds become a more attractive investment.
Although CD rates have recently increased the index has not
gone up proportionately. This is due to old 7 year and 10 year CD'S that are reaching maturity at 7.5 to 10 % and are shifting
into new low rate accounts, or are leaving the index all together.
Have you noticed your bank no longer gives
you a toaster when you open a new Account? Today you are lucky to get an oven mitt!
This shows without a doubt
that banks no longer value our large deposits. If banks are no longer competing for our business, they will no longer pay
us high rates to attract our money.
2) Can I be reasonably certain that the CODI adjustable
rates will not
eventually go much higher? YES
The CODI index is the average of what banks pay for our deposits. This index has
dropped since the savings and loan bailout because banks no longer earn profits from aggressive lending. This means the banks
are no longer hungry for our deposits proven by the low rates paid by today's banks.
3) Why would I want a loan
with deferred interest?
If you have spoken to one of our competitors they may have warned you about "negative
amortization". We see deferred interest, as a beneficial feature not offered with most loans. You always have the option
of making a full interest payment, or pay less if money is short, and defer some interest until later.
If your
loan has the Bi-weekly feature this will mostly eliminate any deferred interest and help to pay off the 30-year loan in 23
years.
4) Are there limits on how much or how fast my payment
can increase?
Yes - the CODI
adjustable has an annual payment cap as well as a lifetime interest rate cap. The payment cap will prevent the payment from
going up or down more than 7.5% (of the Minimum req. pymt.) in any one year time frame. This payment cap is considerably better
than the 2% annual interest rate cap that many other arms offer.
For instance a $1,000 payment could not increase
more than $75 a year. This is why it can take from 3-4 years to reach the fully indexed rate. The lifetime cap on the
CODI ARM has never been reached or needed. Banks would have to be paying 4 times higher interest rates for your payment to
ever reach the 11.95% lifetime interest rate cap.
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