Equity Advantage Program Introduces Quarter-Percent Loan at LEI

By: Michael Ferree
Submitted: 2007-01-17 16:25:36
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An innovative new mortgage program has hit the market touting phenomenally low interest rates and even lower monthly payments. The “Equity Advantage Program” contains a quarter-percent loan that promises to rid borrowers of high interest rates and gigantic payments.

This loan gives the borrower a specified fixed interest rate and a payment option of .25% for the first five years. The borrower can pay the interest only for their monthly minimum payment for these first 60 months. This ground-breaking loan helps borrowers decrease their monthly payment by hundreds of thousands of dollars.

If a person buys a $500,000 home and finances in the Equity Advantage Program, they could expect their monthly payments to be around $104.17 for the first five years. This astonishingly low payment for such a high-valued property can free up an unprecedented amount of cash for the borrower.

It is a hybrid adjustable-rate mortgage, or ARM, designed for people who want to use the equity in their home to increase their cash flow. The minimum payment of the loan will be the fixed-interest only amount for the first five years of the loan, and then the borrower will pay the interest only payment based on the interest rate of the outstanding balance. This interest only period will last for the first 10 years of the loan. The equity advantage program gives the borrower access to cash that they would not have in an ordinary loan. This is basically an interest only 5/1 ARM with the option of paying a minimum of .25% interest only. The difference between the two will cause deferred interest.

“This is essentially unheard of in the mortgage world. During a time when the Federal Reserve raised interest rates 17 times in a row, consumers are finding it harder than ever to deal with the rate hikes. The quarter-percent loan gives consumers their buying power back once again,” said Ward Shandoff, LEI banking analyst.

Traditional loans such as the option-ARM or the negative amortization loan do not give the borrower the cash flow of the quarter-percent loan. Borrowers who use this program effectively will have access to the equity in their home that would not be available to them in other mortgage products.

This system allows homeowners to take a lot more cash out, and use more of their money for something other than paying towards the principal. Credit card debt or any other large balances can be tackled and paid-off with this loan. You can actually use the money you have freed up to compound itself and generate more wealth.

This all goes back to the essential concepts taught by LEI Financial's “Velocity of Money Program,” which uses investment strategies to generate more wealth in a client’s financial portfolio. Your home should be used as a tool to generate wealth, and this is made easier than ever with the quarter-percent loan.

Using this loan, you can take the money you are saving with each monthly payment and put it into an investment that will generate a return. Investment properties and cash-value life insurance policies are great ways to keep your money working for you.

The quarter-percent loan is a great option for those who will use their monthly savings to invest the money or pay off debt. This loan is not a viable option for people who can make the monthly payment only because that is all they can afford in a given month. A person who elects to make a minimum payment must be aware of the fact that there will be deferred interest as a result.

The Equity Advantage Program gives you the right rates and payment options that allow you to free up cash to be used for investment and wealth building opportunities. If a customer cannot qualify for The Equity Advantage Program we promote our Equity Management Program.

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