Tuesday, June 21, 2005
Hazards of option ARMs -- Kathleen Pender, San Francisco Chronicle
Hazards of option ARMs: "Interest-only mortgages have gotten a lot of ink lately, but there's another type of potentially risky home loan that deserves even more scrutiny, according to some in the real estate industry.
Known as an option ARM, it's an adjustable-rate mortgage that typically lets borrowers choose one of four different payments each month. From smallest to largest, they are: a minimum monthly payment, an interest-only payment, full principal and interest amortized over 30 years, or full principal and interest amortized over 15 years."
Known as an option ARM, it's an adjustable-rate mortgage that typically lets borrowers choose one of four different payments each month. From smallest to largest, they are: a minimum monthly payment, an interest-only payment, full principal and interest amortized over 30 years, or full principal and interest amortized over 15 years."
