Comments on: Option ARM’s…finally making the news!!! http://housingbubblecasualty.com/option-armsfinally-making-the-news/ Mortgage insiders view on mortgages, real estate, debt, and the housing bubble. site by SoCalMtgGuy, author of - Another F@CKED Borrower Fri, 21 Nov 2008 02:23:36 +0000 http://wordpress.org/?v=2.0.5 by: B. Durbin http://housingbubblecasualty.com/option-armsfinally-making-the-news/#comment-71 Sat, 04 Feb 2006 01:50:57 +0000 http://housingbubblecasualty.com/option-armsfinally-making-the-news/#comment-71 Yeah, $20K would take care of most of our car loan. I say "most" because the old car got totalled by a hit-and-run last fall and the best car for us was, in fact, new. (I say best only because we intend to wear it out, AND we have "gap coverage" so we won't end up upside-down— and it's a new model style that exactly fits our needs, so no used ones to get.) My husband asked me to figure out this whole house-buying thing. It's interesting, because I think it will take me so long to figure out that we'll actually be able to afford one when I do! :) Yeah, $20K would take care of most of our car loan. I say “most” because the old car got totalled by a hit-and-run last fall and the best car for us was, in fact, new. (I say best only because we intend to wear it out, AND we have “gap coverage” so we won’t end up upside-down— and it’s a new model style that exactly fits our needs, so no used ones to get.)

My husband asked me to figure out this whole house-buying thing. It’s interesting, because I think it will take me so long to figure out that we’ll actually be able to afford one when I do! :)

]]> by: subsonic22 http://housingbubblecasualty.com/option-armsfinally-making-the-news/#comment-21 Fri, 03 Feb 2006 16:10:37 +0000 http://housingbubblecasualty.com/option-armsfinally-making-the-news/#comment-21 I had a conversation last night with a LO who works at a credit union. He told me about a borrower who got a loan 1 1/2 years ago for 2%. Now his 2% rate is 7.5%, and if he refinances his loan, he will pay a 2% PPP, his balance has increased and his home hasn't appreciated like it has in other parts of the country. My friend informed this borrower that most likely refinancing will not help him, in fact, he may not have enough equity to do a refinance anyway. I wonder if Quicken Loans and other option ARM hawkers will run commercials about the recipients of these products 2-3 years later now that the teaser rate has come and gone. I remember interviewing with a broker a few years ago about joining them as a loan officer and they were pushing the option ARM. It was being marketed solely to financial planners, financial advisors, and investors. Now this product is being marketed to anybody. Something tells me that the LO's aren't giving them the whole story. I had a conversation last night with a LO who works at a credit union. He told me about a borrower who got a loan 1 1/2 years ago for 2%. Now his 2% rate is 7.5%, and if he refinances his loan, he will pay a 2% PPP, his balance has increased and his home hasn’t appreciated like it has in other parts of the country. My friend informed this borrower that most likely refinancing will not help him, in fact, he may not have enough equity to do a refinance anyway. I wonder if Quicken Loans and other option ARM hawkers will run commercials about the recipients of these products 2-3 years later now that the teaser rate has come and gone. I remember interviewing with a broker a few years ago about joining them as a loan officer and they were pushing the option ARM. It was being marketed solely to financial planners, financial advisors, and investors. Now this product is being marketed to anybody. Something tells me that the LO’s aren’t giving them the whole story.

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