I ask this because I had a bad experience with one of these loans. However, we need to refinance in order to get out of this right now yet I dont think I will be living in my home for more than 5 years. I was offered a options arm loan where all the options stay the same for 5 years. Sounds great. Is it possible?
2007-05-02 11:58:41 · 3 answers · asked by just a girl 2 in Business & Finance ➔ Credit
Sounds like you were offered a 5 year FIXED option arm. Yes, this is possible, it's a pretty new product on the market.
2007-05-02 12:02:03 · answer #1 · answered by marisanj 5 · 0⤊ 0⤋
An ARM is nearly always more expensive in the long run than a fixed rate loan. With interest rates currently near 30 year lows, this is a particularly BAD time for an ARM. Get a fixed rate loan or sell now.
2007-05-02 13:20:12 · answer #2 · answered by STEVEN F 7 · 0⤊ 0⤋
Yes. It's called a hybrid option ARM. The start rate and index rates and all the payments are fixed for 5 years. good luck
Jeremy Pham
Mortgage Lending & Investments
866-966-4224 ext. 7608
2007-05-03 08:27:20 · answer #3 · answered by Jeremy Pham 2 · 0⤊ 0⤋