"Nightmare Mortgages"

There was an article in BusinessWeek recently with this title. The article made a huge case against the Option Arm loan -- a loan that a lot of mortgage lenders recommend to Clients.

I am not going to argue for or against the program and here is why -- everybody is different! Certain loans are good for certain borrowers and not for others. My job as a Mortgage Advisor is to help people choose the proper loan in order to help them meet their financial goals.

That said, my issue with this particular article is the fact that they leave out the other side of the case -- that this can be good for some people! The following text was a very minimal part of the whole article:

"Option ARMs were created in 1981 and for years were marketed to well-heeled home buyers who wanted the option of making low payments most months and then paying off a big chunk all at once. For them, option ARMs offered flexibility.
...And then they flogged option ARMs -- not as financial-planning tools for the wealthy but as affordability tools for the masses."

My point -- use the media for basic education, but be open-minded to the other side of the argument. That other side will likely come from a trusted advisor -- a Mortgage Advisor. In the end, it's up to you to make the decision that you are most comfortable with....after you have all of the info ;--)