Georgia Cashflow Option Loan or 12MAT  information.

Effectively managing monthly income and expenses, commonly referred to as your "cash flow," is an ongoing challenge for many homeowners. Income may vary on a monthly basis and unplanned expenses may arise. In response to this need, we created the Cashflow Option Loan to provide you with greater flexibility in managing your monthly mortgage payment

For many of us, our mortgage payment is our largest monthly expense. It is also the least flexible. If life were as predictable as our mortgage payment, this would be fine. Unfortunately, in the real world, income fluctuations and unplanned expenses can wreak havoc on monthly cash flow. Greater Control With Four Payment Options Our Cashflow Option Loan was specifically designed to give
you greater control over your mortgage payment. You have the option of choosing one of four payment options each month based on your specific cash flow needs at the time. Minimum Payment A payment that is set for 12 months at a reduced rate. This option not only maximizes cash flow, giving you more cash each month for other expenses, but may also defer payment of interest on your mortgage loan, potentially allowing you greater flexibility in managing your tax deductions.2 Plus, this payment will not increase by more than 7.5% each year, except when your loan is recast every five years or your principal balance exceeds 110% of your initial loan balance. Interest-Only Payment Defer paying principal on your loan and improve your monthly cash flow. The money you
normally use for the principal portion of your mortgage payment can instead be used for other purposes, such as paying off high cost credit obligations or investing. (This option is not available if the payment would be less than the
minimum payment. In this situation, no interest is deferred when you make the minimum payment.) Two Fully Amortizing Payment Options Make a principal and
interest payment based on a 30-year or 15-year payment schedule.

Choose Your Index
Our Cashflow Option Loan is a monthly adjustable rate mortgage, with your choice of either the 1-month London InterBank Offered Rate (LIBOR) or 12-month treasury average (MTA) for your index. The LIBOR is the rate offered by banks in London for U.S. deposits. This index has gained tremendous popularity as an attractive alternative to many of the other index choices because it is an international index that reflects the global economic climate. The MTA index is based on the 12-month average of the monthly yields of U.S. Treasury securities adjusted to a constant maturity of one year. It is calculated by averaging the previous 12 monthly values of the 1-Year Constant Maturity Treasury (CMT) index. Because this index is an annual average, it is steadier than the 1-Year CMT index.

Deferred Interest Consideration
It is important to note that when you choose to defer the payment of interest by making less than the interest-only payment, the amount you defer is added to the loan’s principal balance. Until this deferred interest is paid, you will be charged interest on this additional amount. Cashflow Option Loan Effectively managing monthly income and expenses, commonly referred to as your "cash flow," is an ongoing challenge for many homeowners. Income may vary on a monthly basis and unplanned expenses may arise. In response to this need, we created the Cashflow Option Loan to provide you with greater flexibility in managing your monthly mortgage payment. Providing you with greater flexibility in managing our monthly mortgage payment. Our mortgage experts can help determine if this is the right product for you.

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At Garrett Mortgage Inc., we offer many home loan mortgage programs. Together with the assistance of an experienced, "live" loan officer to guide you through the often difficult and confusing process of choosing and getting the exact home loan mortgage to meet your specific needs.