Comments on: The truth about Option-ARM’s and traditional ARM’s http://www.dougfrancis.com/2009/09/truth-about-option-arms-traditional-arms/ Doug's Real Estate Blog in Vienna and McLean, Fairfax and Arlington with a little humor too. Easy MLS Listing Search too. Wed, 01 Sep 2010 03:55:25 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Jeff Thomas http://www.dougfrancis.com/2009/09/truth-about-option-arms-traditional-arms/comment-page-1/#comment-224 Jeff Thomas Sat, 17 Oct 2009 20:11:59 +0000 http://www.dougfrancis.com/?p=1207#comment-224 I would agree that the option ARM loan is toxic, but only if it is the hands of the wrong borrower. The loan was meant for high income earners that wanted a low payment during the year, then when the bonus came near the end of the year, they would pay the mortgage down. Not a bad idea or financial move when done correctly. But when the loan is given to anyone that can fog a mirror, one can see how toxic this loan can be. Jeff Question is how to keep the economy going with out the country going into deeper debt? The HB credit was just a crutch – not the solution.The program costs money over and above the $8,000, the cost of the credit has been projected to be $43,000 per person who is eligible. Our government can’t always print more each time additional funds are needed to pull us out of a mess. Not sure what the solution is, but it certainly is not restricting homeowners ability to lower their payment with costly overlay’s from Fannie and Freddie. Or extending the credit. The money would be better spent to help homeowners that need to refinance to lower their payment. To many bureaucrats don’t live in the real world to see exactly how the legislation they pass works affects the working class person day to day. Jeff <a href="http://www.lendingsolutions.net" rel="follow" rel="nofollow"> fairfax virginia mortgage,fairfax real estate,fairfax loan officer</A> I would agree that the option ARM loan is toxic, but only if it is the hands of the wrong borrower. The loan was meant for high income earners that wanted a low payment during the year, then when the bonus came near the end of the year, they would pay the mortgage down. Not a bad idea or financial move when done correctly. But when the loan is given to anyone that can fog a mirror, one can see how toxic this loan can be.

Jeff
Question is how to keep the economy going with out the country going into deeper debt? The HB credit was just a crutch – not the solution.The program costs money over and above the $8,000, the cost of the credit has been projected to be $43,000 per person who is eligible. Our government can’t always print more each time additional funds are needed to pull us out of a mess. Not sure what the solution is, but it certainly is not restricting homeowners ability to lower their payment with costly overlay’s from Fannie and Freddie. Or extending the credit. The money would be better spent to help homeowners that need to refinance to lower their payment. To many bureaucrats don’t live in the real world to see exactly how the legislation they pass works affects the working class person day to day.

Jeff

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