The lady in the video associated with the link above said several things that I believe is the unspoken truth. When she first took out a loan of $385,000 with a 3% down payment on a pay option arm program, she was allowed to pay less than the required prinicipal and interest payment for a a two year period. By her own admission, she had a monthly affordability of $2500, which was the amount she paid on the option. If $2500.00 is what she could afford, she should have been looking at homes in the $325,000 (maybe more or less-depending on taxes).
The unspoke truth is that the pay option program is meant for someone who maybe receives a annual bonus; a short term investor, or someone who expects their income to significantly increase over a few years.
It is not a bad program. It was just given to the wrong person. Now, whether or not she was aware of the implications of the program is a different story.
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