ARM, Adjustable Rate Mortgage, Adjustable Rate Loan EDUCATION

DO YOU KNOW OF SOMEONE WHO HAS AN ADJUSTABLE RATE MORTGAGE.  MANY HOMEOWNERS TOOK OUT ADJUSTABLE RATE MORTGAGES OVER THE PAST 5 YEARS OR SO.  A MAJOR PART OF THE NATIONWIDE FORECLOSURE DISASTER HAS BEEN CREATED BY THESE ARMS ADJUSTING AND THE PAYMENTS BECOMING, WELL, LET'S SAY NOT SO AFFORDABLE ANY LONGER.

ADJUSTABLE RATE...  

THERE ARE TIMES WHEN A ARM LOAN IS THE RIGHT TIME FOR A BORROWER.  WHEN WOULD THIS BE:

1. BORROWER WILL ONLY BE IN THE HOME ANOTHER 3-5 YEARS.  PERFECT TIME FOR THEM TO TAKE ADVANTAGE OF A 5 YEAR ARM, THEY WILL HAVE A LOWER PAYMENT ON A HOME THEY ARE NOT GOING TO STAY IN ANYWAY.  BY THE TIME THEY ARE READY TO MOVE, IT WILL BE LONG BEFORE THEIR RATE WAS GOING TO ADJUST.  

2. BORROWER HAS RECENTLY STARTED A NEW CAREER WHERE THEY ARE ASSURED THAT INCOME WILL INCREASE OVER TIME.  THE ARM RATE ALLOWS THEM TO HAVE A LOWER PAYMENT NOW, MAYBE LOCK THEM IN ON A 5-7 YEAR ARM TO GIVE THEM SOME SECURITY UNTIL THAT INCOME GETS BIGGER. 

FEW REASONS

THESE WERE JUST A FEW OF THE REASONS, OR TIMES ARM LOANS BENEFIT BORROWERS.  THERE ARE SOME VERY BAD ADJUSTABLE RATE LOANS OUT THERE, 2 YEAR FIXED , 1 YEAR ADJUSTABLE AND 6 MONTH ARMS TEND TO BE VERY DANGEROUS.  THE MOST DANGEROUS OF ALL IS THE NEGATIVE AMORTIZATION LOAN.  

BOTTOM LINE,

TOTALLY UNDERSTAND WHATEVER PRODUCT IT IS YOU ARE GETTING.  I HAVE 14 YEARS EXPERIENCE.  IF YOU EVER NEED A THIRD PARTY WITH KNOWLEDGE IN THE LENDING BUSINESS TO REVIEW ANY PAPERWORK FOR YOU, I WILL DO IT FREE OF CHARGE.  I LIKE SEEING BORROWERS ACHIEVE A BENEFIT, AND BE IN A PRODUCT THAT IS SECURE FOR THEIR SITUATION. BE SAFE OUT THERE, AND LET ME KNOW IF YOU NEED ANYTHING AT ALL.

ANYONE HAVING APOSITIVE OR NEGATIVE EXPERIENCE WITH A ARM LOAN, GIVE ME A SHOUT ON THE BLOG... I WANT TO HEAR YOUR STORIES.