SouthStar Funding, an Atlanta-based wholesale lender, has introduced a feature that simplifies its payment-option adjustable-rate mortgage by offering fixed minimum monthly payments for up to five years.The 5 Year Fixed Choice Option ARM offers the fixed payment based on an introductory rate as low as 2.99%, nearly eliminating required payment increases typical of option ARMs, SouthStar said. "Due to the potential minimum payment increases, most option ARM products can be confusing to borrowers and difficult for brokers to fully explain," said Mike Fierman, SouthStar's executive vice president and national production manager. "Providing a fixed minimum payment for the first five years simplifies the product for brokers and borrowers, and decreasing the negative amortization cap greatly reduces the risks associated with negative amortization and minimum payments." The company can be found online at http://www.southstar.com.
