Features Lower Interest Rate for Borrower for Sharing Future
Appreciation With Lender
HOUSTON, March 6 /PRNewswire/ -- The new "Shared Appreciation Mortgage"
(SAM), a breakthrough mortgage loan featuring interest rates as low as
4.5 percent in return for a percentage of the home's future appreciation, is
being made available immediately through more than 540 Allied Mortgage
branches nationwide.
"It's been a long time since something this revolutionary hit the mortgage
market," said Jim Hodge, CEO of Allied Mortgage Capital Corp. "This mortgage
is perfect for people who are locked out of purchasing the home they desire
because of increased home prices, or anyone looking for an extremely low cost
loan to pay off high cost debt. I am very excited about bringing such an
innovative product like this to the market which will provide such a
positive impact on home ownership."
Borrowers can use SAM loans to purchase a home, refinance out of higher
cost mortgages, and free-up cash to pay off high cost second mortgages and
credit card debt.
The SAM allows borrowers to increase their purchasing power, reduce
monthly payments on a current home, or diversify assets. The SAM carries a
fixed interest rate as low as 4.5 percent, a 15- or 30-year repayment term,
and an agreement by the borrower to share a percent of appreciation, if any,
in the home's value after the loan was made.
"SAM customers can buy a home that might otherwise be just out of their
financial reach, or they might use the SAM to obtain a low monthly payment and
invest the savings in a college or retirement fund, the stock market or to pay
off high cost debt such as credit cards or second mortgages," explained Hodge.
"Many homeowners are saddled with credit card balances which carry rates in
the 18 percent to 22 percent range and high cost second mortgages that
typically have rates that can change monthly and currently average 9 percent
to 12 percent. It makes perfect sense to replace this high interest rate debt
with one low fixed rate."
The low fixed interest rate is determined by the amount of future
appreciation the borrower agrees to share. Generally, the higher the level of
appreciation that the borrower agrees to share, the lower the interest rate.
Houston, Texas based Allied Mortgage Capital Corporation is the largest
affiliated branch network mortgage company in the United States with more than
540 branches operating in 48 states, Guam, the U.S. Virgin Islands and Puerto
Rico. Allied offers mortgages from more than 700 lenders including
conventional fixed rate loans, debt consolidation programs, FHA and VA
loans, Jumbo loans, Reverse Mortgages and the Shared Appreciation Mortgages.
Rates and terms may vary. For more information about the Shared
Appreciation Mortgage (SAM), please call 1-800-520-0057, contact a local
Allied branch near you or visit the company's web site at
http://www.mortgageasap.com.
SOURCE Allied Mortgage Capital Corporation
 back to top
Related links:
http://www.mortgageasap.com
CONTACT:
Ron Litt of Allied Mortgage Capital
Corporation, 713-353-0400
|
