A new alternative to the option arm program is being called an Assured Arm. An Assured Arm offers the stability of a 5 year fixed ARM combined with 4 monthly payment options, including a low minimum payment option with deferred interest. This minimum payment rate is typically the note rate minus 3% and is fixed for 5 years. the other payment options are typically an interest-only payment, a 15 year amortization, and a 30 year amortization.

This results in a less risky and simpler product to understand the benefits for more than the typical Option Arm Customers. The typical Option Arm has an interest rate that adjusts monthly, and often has a relatively high fully indexed rate compared to todays typical rate climate The indices for Option Arms and adjustments often are confusing for many consumers as well.

Many documentation types are available for this program as well as primary residences, 2nd homes, and investment properties. Consult with your Mortgage Professional to review your payment options with you to determine if this product is the right fit for you.

Assured ARM home loans are often referred to as hybrid loans, or fixed rate minimum payment loans. Start rates as low a 0.25% or 1% are increasingly common.

For many consumers who are self-employed or receive significant bonus income, the assured arm offers a substantial budgeting benefit. You can prepay your loan as a 15 year payment one month to reduce your balance, then opt for a reduced payment for times of reduced cash flow.

The main benefit of the assured arm is a fixed rate of actual interest accruing for 5 years as opposed to variable rate terms of most option arms.