Argent Product Lowers Initial Monthly Payment.

Irvine, CAWholesale lender Argent Mortgage Company here is offering a fully amortized 40/30 loan program that helps make homeownership more affordable and less risky to homebuyers, all the while enabling them to consistently build equity on their house.

These features are expected to serve well the current shrinking market where borrowers and lenders alike are looking for new efficient lending options.

"While the idea of lowering mortgage payments is attractive to most borrowers, many people are also looking for ways to avoid balloon payments and maintain their equity building potential," Argent president Sam Marzouk told MSN. "Argent Mortgage Co. found a modern approach for a traditional 30-year-term program that allows mortgage professionals to help their customers meet these goals."

Irvine, Calif.-based Argent said the 40/30 loan option is designed "to perform like a 40-year loan for the first 10 years of the loan term." It provides borrowers with the option to extend the time period, during which they can pay less money for their monthly mortgage, avoid balloon payments, reduce principle during the entire life of the loan and build equity.

The 40/30 product caters to both the needs of low- to medium-income borrowers and those living in higher-cost real estate markets where a 40/30 loan helps increase their buying power.

Mr. Marzouk noted upon the release of the product a few months back, "As one of the first loans of its kind from a major lender, our fully amortized 40/30 product gives mortgage professionals who work with Argent an attractive solution for many borrowers who want to reduce their payments without sacrificing their equity-building potential.

"The borrower would have 10 years at a 40-year amortized payment. After the initial 10 years, the monthly payment re-amortizes over the remaining 20 years. Overall, the loan is paid off in 30 years without a balloon payment."