Option ARM Loan - Unclaimed Interest RecoveryThe flexibility provided by an option ARM loan makes it popular with borrowers. With our unclaimed interest recovery, you can also obtain a tremendous tax benefit. Option ARM Loan Of all the various loans on the market, the option ARM is arguably the most popular. Why? It is all about flexibility. This loan allows the borrower to set certain parameters on their payments. They can make interest only payments, shorten up to a 15 year amortization schedule, extend to a 40 year payment and, with some loans, even skip a month or two of payments. View Option ARM Recovery Video The option ARM also comes with a few downsides. While it should be used to create flexibility for a borrower, it is often used in a manner that results in negative amortization. The borrower continually pays the minimum monthly payment and the amount owed actually grows. The growth comes from the deferred interest, which is being added to the principal of the loan. Fortunately, there is an upside to the deferred interest. In fact, leveraging property with deferred interest payments is a common strategy among the seriously wealth. Why? It all has to do with taxes. More to the point, the issue has to do with tax deductions that can be claimed. View Option ARM Recovery Video The tax code provides an interesting bit of guidance regarding deferred interest. It states that deferred interest can be claimed in the year it is deferred versus the year the interest is actually paid. Yes, you can deduct the full amount of interest deferred each year on your tax return. This amounts to thousands upon thousands of dollars in tax refunds. In fact, it will probably create the biggest tax refund you have ever received!
Given the value of homes these days, you do not have to be rich to use this strategy. All you need is to have an option ARM loan. Contact us today for a no-obligation consultation on your specific situation. << Back to Wealth Strategies
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