The option arm loans are those that get advertised so much on the radio and television with those LOW LOW payments without letting consumers know about the details and they make it seem like it's such a great loan that it even made my own wife today ask me why i don't do this for our home loan because it would save us alot on a monthly expense...Since this is our primary residence and i plan on paying off at some point you can imagine my response...
Now here's a Question i personally don't like these loans except for the savvy investor who wants to increase cash flow or someone looking for something very temporary before selling...NOT our typical buyer....What do some of you like or dislike about these option arms which you have 4 options every month on how much you would like to pay minimum,interest only,P.I,and 15yr pay off...
I just had a client want me to give him this type of loan that i just new wasn't right for him and he could afford at least a P.I payment but thought this was a better loan for him because he could decide on how much to pay every month and then he could finance a higher priced home if he just make the minimum payments every month. Without giving all details of the transaction I tried to educate him on how these loans work and if he wanted a better loan then at least doing a fixed interest only with no prepay would be better. Oh did i mention it's 100% loan to value but, he wants the option arm WOULD YOU DO THE LOAN? I told him i did not feel comfortable and thought he would regret it in the future...
North Idaho has had an average appreciation of 8.5% over the last 25 years. (Take a look here for further info: 
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