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cougjunkie · 08-21-2006, 08:55 PM

being in the mortgage industry i have learned quite a bit lately about this new phenomonen, its not real new, but with all the flipping going on a lot of people are starting to get in to these.

Basically you can have a rate of 1% for the first month on your mortgage or 1.75 for the first 3 months, and your payment stays fixed for 5 years. By doing this however your loan becomes negative amortizing depending on what payment option you choose. I feel like this is very risky, but if you are going to flip the house and only hold on to for a few months this is the way to go.

08-21-2006, 08:55 PM	#1
cougjunkie Senior Member Join Date: Jan 2006 Location: Utah Posts: 5,741	Option Arms being in the mortgage industry i have learned quite a bit lately about this new phenomonen, its not real new, but with all the flipping going on a lot of people are starting to get in to these. Basically you can have a rate of 1% for the first month on your mortgage or 1.75 for the first 3 months, and your payment stays fixed for 5 years. By doing this however your loan becomes negative amortizing depending on what payment option you choose. I feel like this is very risky, but if you are going to flip the house and only hold on to for a few months this is the way to go. __________________ LINCECUM!