Arizona Mortgage, Home Loan, Refinance, Phoenix Mortgage, Home Equity, Is My Loan Fair
Arizona Mortgage, Home Loan, Refinance, Phoenix Mortgage, Home Equity, Is My Loan Fair Mortgage Advisory Services LLC - Independent Mortgage Advice, Loan Review, Loan Modification Assistance Is My Loan Fair

Option ARM Report

IsMyLoanFair.com gives you personalized recommendations based on your unique situation. You’ll know what course of action to take—and the reasons why.

Option ARMs are popular loan products these days, but aren’t always the best choice. Many loan salespeople advertise and recommend these loans because they lower monthly minimum payments, but, in reality, Option ARMs are expensive, and are only right for a small portion of savvy consumers. Option ARMs can be especially dangerous in markets where housing prices are coming down and interest rates are going up.

One client came to us with a 5-year, fixed-pay Option ARM with negative amortization and a balance of $332,000. He would be forced to refinance in 25 months, and wanted us to tell him whether or not he should refinance sooner.

Unlike an opportunistic salesperson tempted to jam a client into any loan that earns a commission, regardless of whether or not it’s right, we offered this client objective, definitive advice designed to give him knowledge and peace of mind.

We analyzed his current loan, looked at some new fixed-rate options, and made a recommendation based on his current situation.

We determined that he could save $5,394.96 each year on a 30-year, fixed rate loan with a 10-year interest-only payment period.

We also determined that he should refinance immediately, even though his current lender would be charging a 2% pre-payment penalty.

Armed with this information, our client was able to find a lender who could get him out of a bad situation and deliver the savings he was looking for.