What is the Wealth Optimizer Advantage?
The Wealth Optimizer is an adjustable rate mortgage with added flexibility of making one of several possible payments on your mortgage every month, in order to better manage your monthly cash flow.
The freed up cash flow can be repositioned into investments that are more liquid and safer than having home equity tied up in the bricks and mortar of your home. By taking back control over these dollars, you can maximize your mortgage interest tax deductions and allow your money build significant wealth.
The minimum payment option can help keep your monthly payments affordable. If the minimum monthly payment is not sufficient to pay the monthly interest due, you can always avoid deferred interest by choosing the interest-only payment option.
The Wealth Optimizer is right for you if you'd like to own your property only for a short time, and prefer affordability and flexibility in your monthly payment. However, if you select the minimum payment option in the early years, you should be prepared for possible sudden increases in your monthly payments thereafter unless you plan on refinancing before the loan recasts (usually 5-7 years). This is why it is very important to work with a professional Mortgage Planner that continually monitors your loan.
The Wealth Optimizer's low introductory start-rate allows you to make very low initial mortgage payments and low qualifying rates enable you to qualify for more home.
Calculating the monthly payment: The payment during the first five years starts by calculating the payment using the initial low introductory rate, usually 1 percent to 2 percent. That will be your payment rate. Each year the payment will increase 7.5 percent for the first five years.
| Minimum Payment for $378,000 Loan: |
| Year 1 |
$1000.00 |
= Base of Minimum Payment |
| Year 2 |
$1075.00 |
= Year1 $1000.00 + 7.50% |
| Year 3 |
$1155.63 |
= Year2 $1075.00 + 7.50% |
| Year 4 |
$1242.30 |
= Year3 $1155.63 + 7.50% |
| Year 5 |
$1335.47 |
= Year4 $1242.30 + 7.50% |
Apply Online to be pre-approved for the loan you want.
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