Is it ever just time to find a way to get a low payment mortgage?
One of my previous clients emailed and told me he was in a tight spot and needed help meeting his monthly budget. What had occured was that his company had closed its doors, and someone convinced him that spending $35,000 at ITT Tech would solve his career problem.

Not the case. He found himself having new student loans, one credit card which has $13,000 balance and a first mortgage of $118,000 with a payment of $1,064.

His monthly mortgage payment was $1,034 and each month he was paying $346 on his credit card. 
The 1-Month Option Arm with a start rate of 2.75% appeared to be the best solution. What this product will provide my client is a mortgage payment that is dramatically reduced (almost by 50%) and can only increase by 7.5% each year. 

The downside is that if only the minimum payment is made, my client owes more on his house than he did the previous year.

The lender will provide him a variety of payment choices each month.  One will be the minimum, another will be interest only, and another will be fully amortized principle and interest. 

The benefit to an Option Arm mortgage is, that a person who’s cash flow is sporadically reduced, has the “option” to pay a low minimum payment

His total out going expenses are now only $564 and he now has paid off the $13,000 on the credit card. 

His minimum monthly payment can only increase annually by a miniscule 7.5%. The worst case scenario, in year two his mortgage payment is $810; and year 3 he will be at $893.
Three years will be enough time for him to put some new choices in place.  He can refinance then, sell his property or do whatever. 

This was a wholesale proposal which produced for this client exactly what he wanted: a low mortgage payment .