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Contact
Ron Litt, VP, CIO
Allied Home Mortgage Capital Corporation
(713) 353-0400
Houston, Texas (March 5, 2001) - 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 Home Mortgage branches nationwide.
"It's been a long time since something this revolutionary hit the mortgage market," said Jim Hodge, CEO of Allied Home 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.
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 www.mortgageasap.com.
About Allied Home Mortgage Capital Corporation
Allied Home Mortgage Capital Corporation is the largest U.S. privately held mortgage banker/mortgage broker, with offices in 49 states, Guam and the Virgin Islands. Allied's development of over 700 investors with several thousand programs and innovative partnerships have allowed it to deliver customized products to each borrower. Combined with the energy of branch managers who have the freedom to respond to local market conditions, Allied has experienced sequential double-digit growth since it was founded in 1991.
For more information about the company, visit Allied's websites at www.branchasap.com and www.mortgageasap.com.
Corporate address: Allied Home Mortgage Capital Corporation, 6110 Pinemont Ave, Houston, TX 77092. Telephone: (713) 353-0400.
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FOR IMMEDIATE RELEASE