It seems that everyday, there is a story in the news about consumers who are in dire financial situations due to adjustable rate, interest only, or negative amortization mortgages from just a few years ago. Now that rates are starting to adjust, some homeowners are finding that they can’t make the higher payments and are in danger of losing their homes. Some homeowners with interest only or negative amortization loans have learned the hard way that, although they’ve made every payment on time, they actually owe more on their homes they originally borrowed.
In over a decade of serving thousands of homeowners with loans tailored to their unique needs, I’m most proud of what I haven’t done instead of what I have done. That is, I have never placed a customer in an interest only or negative amortization loan. Although I have lost customers over this, I will not put someone in a situation that will afford them lower payments in the short term but jeopardize their financial future with constantly increasing payments and balances.
There are times that an adjustable rate mortgage is beneficial to a customer. If a customer has slow credit or excessive debt due to a job loss, medical expenses, or other situations, an adjustable rate mortgage with a two- to three-year initial fixed rate helps a customer resolve the immediate financial concern. Then, the adjustable rate mortgage can be replaced with a fixed rate mortgage when the customer is back on his/her feet.
Other times though, customers may be persuaded to take on an adjustable rate mortgage simply for the lower payments, but when the rates adjust upward, the low payments become a distant memory. I have helped numerous homeowners get out from under this burden with low, fixed rate mortgages that puts them in control of their destiny.
My goal is to have each and every customer be a satisfied customer today, tomorrow and in their future, because they know they have improved their financial situation and are a bit closer to living their American Dream.
It seems that everyday, there is a story in the news about consumers who are in dire financial situations due to adjustable rate, interest only, or negative amortization mortgages from just a few years ago. Now that rates are starting to adjust, some homeowners are finding that they can’t make the higher payments and are in danger of losing their homes. Some homeowners with interest only or negative amortization loans have learned the hard way that, although they’ve made every payment on time, they actually owe more on their homes they originally borrowed.