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Which loan is right for the client..

Commonly I get questions on which loan is going to benefit the client if they plan on staying the home for 3, 5, 7 or 10 years plus. Here is a quick reference:

Years you plan to stay in the home Recommended program

1-3 years 3/1 ARM, 1 year ARM or 6 month ARM

3-5 years 5/1 ARM

5-7 years 7/1 ARM

7-10 years 10/1 ARM, 30 year fixed or 15 year fixed

10+ years 15 or 30 year fixed

Posted by aasent Mortgage Corporation Georgia's FHA Loan Expert FNM/FHMA/FHLM on 04/01/2007 09:09 PM

Comments (2)

atlanta, georgia, loan officer, mortgage broker

2 Comments on Which loan is right for the client..

I have to ask. Their is very little difference between a 30 year conforming rates and ARMs due to the short term rate trend over the last 18+ months, at times we have had a near inverted yield curve. On most days the 5/1 and 7/1 ARM rate is marginally higher than a 30 year fixed rate. I am of the opinion that ARMs are no bargain in this market. Given the uncertainty of future plans - i.e., we thought we would stay 3 years and wow it now been 5. I would'nt recommend an ARM - there is no rate benefit to doing so and no penalty for not. Just a friendly difference of opinion.

James

04/01/2007 10:28 PM

by Chartwell Mortgage Corporation

Absolutely, I agree! Options are always good, each loan is always unique to the client. I have noticed here in Atlanta, that a majority of people are afraid of arms. I like them for their purpse, it all depends on the client needs.

04/02/2007 11:48 AM

by aasent Mortgage Corporation Georgia's FHA Loan Expert FNM/FHMA/FHLM (aasent Mortgage Corporation - Georgia"s # 1 FHA Lender)

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