Gpm Vs Option Arm??

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Anyone break down this type of mortgage? Sounds like a good loan for me? GPM VS OPTION ARM? Which would be better in a good real estate market!!

  1. Reply
    May 3, 2011 at 10:49 pm

    There is no way to tell without knowing more about you and your financial situation. How you intend to use the property matters. Will you be living there or renting it out.

    Your future income, your cash reserves and your ability to deal with the future adjustments are all key. If you are assuming a good RE market then run the numbers for a bad RE market (what ever you consider the opposite). Do you still want to have the loan in place if the market is not a good one? Would you have picked a different financial product?

    Is this a property you would buy if you had to pay the full amortized payment? Are you investing, looking for a home or speculating on appreciation? All have their place. You just need to know why you are buying and what you will do if the future is the same or different than expected.

    Bottom line is the correct answer varies by the person, the market and the property. Some will argue that certain products are bad news or they are a time bomb. Mostly they are saying that there are specific issues that you have to be fully aware of before you leap. Not all loans are equally good but I would never say that a loan type is bad for all people in all situations.

    Note I am a RE investor who has been investing for over 20 years in different markets and countries.

  2. Reply
    mortgage help
    May 3, 2011 at 11:19 pm

    that’s your call. option arm details,

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