Payment and rate stay the same from start to finish.  Predictable, stable, and in today's market they are priced very competitively with Adjustable Rate Mortgages (ARM's).

Lowest start rate currently available. This is the loan being hyped everywhere.  A very complicated loan, it is trouble to those who do not fully understand what they are getting into.  There is a very real possibility that you will end up owing more for your property than what you thought you paid.  Please contact us for more information about this type of loan.  We will not sell you a Pay Option ARM unless you can demonstrate an understanding of this product.

Low start rate adjusts every 1, 3, 6 or 12 months depending on program and is based on the economy.  Made sense when rates were very low and properties were rapidly appreciating.  Today's variable rate loans are only marginally less than fixed rates loans (without the stability).

An ARM program that is fixed for the first 2 or 3 years, then shifts into a 6 month adjustable rate mortgage. It is a sub-prime program giving you a rate lower than the sub-prime 30-year fixed, and if you have had credit problems, it allows a window of time for credit rebuilding and seasoning. You will then want to refinance this loan.