loan options

On my Condo i have a 4 arm option i believe its called. I paid the highest amount I could pay upon the loan rather than the interest last month. Something tells me this was stupid. I just feel dumb paying only the interest and really just losing that money every month. Help me understand this lol

Are you sure you have an Arm??

is it a 3 or a 5 year arm?

An arm is normally given to a buyer, when the buyer has Bad Credit, For example

If you have a 3/27 arm, for 3 years you will have a locked rate, and after your 3 years based on how well you maintain your credit; your rate will adjust according to your credit and the market rate.

This can be good, if you are serious about repairing your credit.

An arm can also give you a low interest rate, which some investors jump on.

Interest Only? Investors use this program when they intend to sell a property, or flip a property.

Based on the Program, the Borrower will pay on the Interest for the first few years of the loan.

Or Pick A Pay? ( Have the option to pay on either interest, principle or both

I think the OP has what I call an Option ARM. Interest accrues according to the index plus margin, but the consumer has the choice of paying a negative amortization payment amount, interest only, or one of two amortizing payments.

As for the answer to the original question, it depends. If you can put your money to work and earn large returns on it, pay the minimum. If your extra cash goes to Starbucks, pay the highest amount.