What are people's thoughts about the option arm products that are offered by multiple lenders? I have my own and I will share them, but I want to receive comments from Real Estate Agents on their perceptions and their own experiences with clients that have used them to purchase a home.
I'm sure everyone is familiar with the concept, but an option arm loan provides choices to the borrower on how much they will pay towards their mortgage in any given month. You can choose a principal and interest payment based on a 30 year of 15 year amortization. You can choose to make an interest only payment, or you can choose to make a minimum payment, which is a portion of the interest due that month for your mortgage. The paid interest will be deferred to the balance of your mortgage. I can give you examples of how this type of loan was able to help an individual and I can give you examples of how this type of loan helped destroy someones finances to the point they almost lost their home.
I would love to hear feedback from people on their own experiences.
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