Option ARM Mortgages: the Right Tool or the Wrong Move, GuideToLenders.com Reports

With an incredible array of mortgage loan options available today homebuyers need resources such as GuideToLenders.com, a top online consumer resource, for information and advice to help them avoid loans that could lead to trouble, or worse, foreclosure. GuideToLender.com's newest article, "What is an Option ARM and Why Would You Want One?" offers critical information to homebuyers considering an adjustable rate mortgage. Without resources like GuideToLenders.com homebuyers might find themselves with the wrong loan for their financial situation.

(PRWeb) June 5, 2007 -- Homebuyers today are faced with many mortgage options and GuideToLenders.com, an online consumer resource for broker and lender information, provides the answers interested buyers need in order to make a wise financial decision. GuideToLenders.com and sister site GuideToRealty.com, a leading online resource for homebuyers who want to connect with the right real estate agent, provide critical and timely information for homeowners and homebuyers. In GuideToLenders.com's latest article, "What is an Option ARM and Why Would You Want One?" Gina Pogol explains how option ARMs reset causing payments to increase. The article also details the potential damage homeowners can cause themselves by choosing the wrong home loans (http://www.guidetolenders.com/calculatorsx/What_is_an_Option_ARM_and_Why_Would_You_Want_One.jsp).

Recent troubles in the mortgage market indicate that a number of homeowners purchased loans that did not fit their finances. In a recent study conducted by First American Core Logic, Dr. Christopher Cagan analyzed 8.4 million adjustable rate home loans sold from 2004 to 2006 and estimates that 13 percent of the loans will end in foreclosures -- an amount exceeding $300 billion. This doesn't spell doom for everyone, and Dr. Cagan writes, "The vast majority of borrowers will be fine." However, the numbers highlight the need homebuyers have for resources like GuideToLenders.com to make sure that they find the loan that best fits them (http://www.guidetolenders.com).

Though there are mortgage options that can help homeowners save in the short term, a proper understanding of adjustable rate mortgages is necessary. Mis-using an adjustable rate mortgage can have long term ramifications. Pogol lists in her article several scenarios to contrast how an adjustable rate home loan can work well for some homeowners but prove disastrous for others (http://www.guidetolenders.com/calculatorsx/What_is_an_Option_ARM_and_Why_Would_You_Want_One.jsp).

To compound the problem some analysts report that refinancing to a fixed rate loan from an adjustable is becoming more difficult. "The tag line you always hear ... is you can refinance with no problem," says A.W. Pickel, a mortgage banker with LeaderOne Financial Corp, "but it is a problem." Homebuyers turn to GuideToLenders.com and sister Web site GuideToRealty.com (http://www.guidetorealty.com) for advice and resources to help them make the best possible decision for their home loan needs.

GuideToLenders.com is a consumer resource featuring guides on how to find the right lender or broker to provide options to best suit consumers' needs. The site has a variety of free tools and tips and provides an easy way to find multiple lenders to help consumers with their lending needs. Products offered by the lenders/brokers include new home financing, refinancing, home equity line of credit and debt consolidation loans.

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