1% Mortgage - Broker Promises It Will Change Your Life

Imagine being on a business trip sitting in a your hotel room bored stiff at 10:30 pm...what's a person to do?  That's right, start channel surfing and hope something of quality is on. Well, while in the midst of an extended business trip to the San Diego area that person was me.

Needless to say, I was shocked when before my eyes a local mortgage company was running an infomercial hawking 1% Option ARM's. While this would not have surprised me a year ago, one would think with decreasing property values in California and all the news about option ARM's, this type of advertising would be a thing of the past.

Apparently, I was wrong.

Here are a few highlights of the infomercial:

• If you are paying more that 1%, you are paying way too much
• 1% on your mortgage - Even if you just purchased your home
• 1% ARM's - Did you ever think you'd see a rate like that?
• Why didn't anyone tell me (consumer) about this program?
• Stop paying those high interest rates
• It's a tremendous product
• It's a tremendous vehicle to get you out of a bad situation
• It's the loan for you!
• You won't regret the decision
• Improve your lifestyle
• It will change your life
• Most beneficial way to balance finances and life
• Get your life back
• Save between $800 to $1,000 per month
• Buy a car, go on vacation and/or invest the rest
• This loan allows for the lowest monthly payment
• Freedom and flexibility
• Qualify for higher loan amounts

Never mind the FACT this is not a 1% interest rate given the deferred interest and other concerns that must be addressed. While the Option ARM can be a great tool for a very select group of financially savvy borrowers, it can be a disaster for the average consumer.

In my opinion, this is a dangerous sales methodology that has hurt so many people over the last few years. I liken it to the "Music Man" play/movie. While the instruments the salesman was selling had the potential to make great music, in the wrong hands all you have is a complete mess and are left feeling duped.

Instead of going further, click on the hyperlink below and you can judge for yourself by hearing it straight from the horses mouth:

It's The Loan For You

NOTE: For a select group of financially sophisticated borrowers the Option ARM is a great fit, however for the average consumer it is not the appropiate financing vehicle for them to utilize.   

Comments

[Brian Brady]

The option ARM is OxyContin; very powerful and effective when used as directed. The problem is that it was dispensed like aspirin; often, liberally, and OTC by those untrained in its effects.

[Tony Gallegos]

Brian - Like I told you previously, that's probably the best metaphor I have ever heard explaining the Option ARM!!!