Maybe I’m missing something but why would there be anything wrong with a Neg Am Loan if you already know you can afford a 30 year fixed. Seems to me you would simply need to figure out if you could get a better rate of return on the 12 to 15 k you are saving on the payment. Not going to say that is an easy thiing to do but for those who are heavy into investing seems a lot chaeaper than margin rates or if I owned my own busing it is cheaper than an SBA loan. If on the other hand I could not afford the 3500 hundred payment and the neg am was the only way I could get into the home I would would tend to think that this would be an inappropriate product.
This guy might have been a schmuck but I would want to know the difference between payment on an ARM and 30 year fixed if I were making a decision.
