This entire site is speculation, based on some facts.
I don’t KNOW what values will be in 5 years.
People definitely get misguided by loan thieves.
There are way too many myths about mortgage loans.
Many/Most people in lending biz are financially ignorant and don’t really have a clue what is best for the borrower.
They cannot explain options to the client or the pros and cons of a loan. They are sales people only trying to make money for them, regardless of what’s best for the borrower.
They DO know that they can get the largest commission possible by selling the low payment of the option arm loan. They also know that they can make more money by charging the borrower “just a half-point” more than they should.
People who tell me that they had 700+ scores and knew they wanted to be in the property long term, yet were sold a 2 YR ARM, with the promise of a “free” refi in 2 years. It’s a disgrace. The stories are true, and are endless.
I believe that the vast majority of borrowers are in the wrong loan for their situation OR paid too much in rate or fees. There are honest, ethical people in the industry, but it’s hard to find them. It’s a rogues gallery.
More people get outright screwed by friends and family on loans than you would think. It’s also a falacy that going directly to a large bank gets the best loan. It may be, but not necessarily.
I give people straight answers and options and explanations beyond what they even knew possible. It’s their decision, not mine.
The 10YR ARM provides many people the security that they need, however they choose the 30YR fixed. It’s expensive insurance.
It doesn’t matter to me, I just want them to know their options.
