Cash Flow Loans

A Cash Flow Loan is one that gives you the 4 payment options: 1) a minimum loan payment, 2) the interest only payment, 3) 30 year amortizing payment, 4) 15 year amortizing payment.

At Mortgage Planning Group, we offer a variety of Cash Flow Loans, including 30-year fixed-rate mortgages and adjustable-rate mortgages.

For many, the most appealing feature of a Cash Flow Loan is that it offers the lowest monthly payment available compared to any other loan option. Control the payment amount and personal cash flow in any given month. The interest rate may or may not be lower than a traditional mortgage, depending on the specific situation, however the option(s) of flexible payments will be afforded.

Who Is a Cash Flow Home Loan For?

There are a number of good reasons to consider a Cash Flow Loan. For instance, it might make good financial sense. If the interest rate is low, then borrowed money is at a good rate. Instead of paying down that low rate loan, a homeowner could take the extra money each month and invest in something that would bring a higher rate of return. Depending on the loan amount, a homeowner could have access to thousands of dollars over the course of several years to invest or reduce high interest debt, including credit card debt.

Conditions that may accompany the use of this loan :

• Comfortable with an initial low payment and monthly payments that will change annually for the first 5 years and thereafter
• Looking to get into your home with the lowest payment possible.
• The home is in an area of increasing home values.
• Have additional debt to pay off.
• A need to increase your saving contributions for Retirement, College, a specific dream or goal.
• Expect to sell the home or refinance the home loan within 3 to 5 years.

 

Common Misconceptions About Cash Flow Loans

While a Cash Flow Loan may be an appealing option to many, there are a number of common misconceptions that a homeowner should be aware of prior to making any final decisions.

One common myth is that if you're not paying down your loan's principal, that equity is not in the home. This is not necessarily true. Homes in the U.S. have been appreciating between 5 and 6% a year. Chances are that even if principal is not being paid down, the home is building equity through appreciation.