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Option Arm
Moderators: Mortgage-X

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   Types of Loan Programs-> Pay Option ARM, Pick-a-Payment, Cash Flow LoanMessage format
Posted 5/16/2006 7:48 PM (#1064)
Subject: Option Arm
what are the down falls of option arm. What are the positves of an option arm
Posted 6/1/2006 1:14 AM (#1106 - in reply to #1064)
Subject: RE: Option Arm
Some of the positives are tat the program offers the maximum payment flexibility. This is especially helpful in paying off credit cards, funding a savings plan or 401K, or paying off a high interest second lien faster.

The pitfalls really are misuse. When someone doesn't fully understand the product, negative amortization can jump up an suprise them. Also, placing this loan on a volatile index such as LIBOR or the MTA can speed up the amount of neg am you accrue. This can cause MAJOR payment jumps and suprises.

I'd be happy to help further, the majority of my bank's clients purchase these products. Just let me know!

Matt Trombley
Home Loan Experts
A Division of World Savings
Posted 11/9/2009 8:00 PM (#2031 - in reply to #1064)
Subject: RE: Option Arm
Posts: 1
Of all the mortgage ideas developed during the past few years, none tops the option ARM for sheer awfulness. And now the mortgage mess is about to get far worse as millions of option ARMs begin to recast
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