Question:

Should I use a Pay Option ARM program?

Answer:

The Pay Option ARM program has its clear cut benefits that make it a very attractive product. For example, a refinance to the Pay Option ARM program can help you save cash for investments, or allow you to make minimal mortgage payments if you are in a tough financial situation.

However, people crowd for a Pay Option ARM program because the ad reads like that:

Get a new house for $500/month! Rates as low as 1.5%! Cut your mortgage payment with up to 50%! Call now!

The Pay Option ARM program ad doesn't cite negative amortization.

Few people would run for a product that entails negative amortization. However, people will get excited at the prospect of getting a house for $500 a month, who wouldn't?

Before you get excited, though, inform yourself and consult your broker about this goody. Neg Am mortgage loans can be handy for those who can use them. However, the general public rushing for the discount of the Pay Option ARM programs might be in for a surprise.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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