Wednesday, August 22, 2007
Lose an arm and a leg:Get an option arm today!
I have long hated this mortgage product. I am a big proponent of getting an old fashioned fixed rate. I completely understand the purpose of this loan structure, but in no way did the 12% of people that did them last year really understand the product. We usually see people get the picture about a year in when the balance has skyrocketed. Unfortunately, the NEGAM is the payment they could afford not the interest only. In addition, with the financial engineering in these products people buy the idea of the NEGAM payment and don't notice the high note rate which is the real interest rate that the borrower is charged. This product is being eliminated at lenders/banks daily. The real concern for people with these is that they get out from under them and into a safer loan product. Cheers and don't let the video spoil your dinner. From our friends at:http://armcrash.com/