Cash Flow Note Formula:

To calculate your monthly mortgage payment at 1.25%, you must multiply your loan amount by 3.3.          $100,000 times 3.3 = $330 principal and interest.

 

    In comparison to another industry, people could never imagine that whole life insurance would ever be replaced.   Like the 30-year conventional mortgage, it was a fixed, stable, and safe product. People today, in the modern age, are requesting more sensible options and more updated products. Term insurance captured the market with time, for the math made sense.   Rates on term insurance are not fixed and rates could go up, but people looked at the long-term picture. It was a more intelligent way to handle the product. People had to learn to think outside the box, and now the product dominates.  Only a handful of lenders in America offer our cash flow product.  It has been said that this is a more intelligent way to handle a mortgage.  Some day this could be the way that most mortgages are written.  It has been called the term insurance of the loan industry.

    Today, times have changed from when the 30-year block mortgage payment was designed. Why pay a higher mortgage payment for 30 years unless you are going to be the rare one who pays it undisturbed.  Unlike the old days, people today have 5 or 6 jobs in their lifetime and are moving around constantly.  Americans average approximately $8,000 in credit card debt, and have inadequate retirement funds. It has been said that people will need $400,000 plus in the future to retire, because of the increased cost of living and the fact that people are living longer.  Social security could run out unless taxes are raised 65% immediately, which is unlikely, so we really can't depend upon the government to support us in retirement.

    Most Americans have inadequate college funds as well. The cost of college is extremely high at $10,000 plus per year. It is difficult for most to find the cash flow to jump-start a respectable savings program.  People have more expensive homes and larger mortgage payments.   Many find it difficult to locate the cash flow to even have a reserve account for emergencies, which can lead to financial instability. The first step to financial stability and security is to have six months salary in a reserve account for such uncontrolled situations.

    Cash flow loan solutions eliminate stress and provide stability to families. Many people have these types of mortgages because they wish to enjoy a quality lifestyle. There are a variety of motivations, but the point is that times have changed and so have your options with a mortgage. The 30 year fixed mortgage is a bit outdated for many people.  It's all about the math and flexibility.

    The basic core problem seems to be that most people are applying for a mortgage every five to seven years, which can be a dangerous trend and detrimental to their financial security. It is a trend caused by cash flow needs for home improvement, automobile purchases, funding a child's education, or for cash out. Statistically, there are a large segment of the populations who apply for a mortgage over and over again.   It is a well-established trend that needs to be broken.  This product meets that huge need and is now one of the highest demand products in the industry.

 

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