Will Loan Disclosures Work?

Were Interest-only mortgages (IOs) and option ARMS (OAs) designed as creative options for borrowers, or to confuse them? More than likely the later since borrowers usually don’t understand the risks involved. As pointed out by analists, it’s not realistic to assign responsiblity of all mortgages to loan officers or mortgage brokers. Their primary concern is selling loans, not enforcing new regulations.

How about the suggestion that a new set of disclosure requirements be placed on lenders? Since most borrowers don’t understand them and they are too lengthy and full of non-info, it’s probbably not a workable solution.

Expecting lenders to explain the negatives is an unlikely event. IOs and OAs were created to lower payments...initially. Explaining the consequences is something else.

Quick Tips
Upfront Mortgage Brokers

For further details you might refer to professor of finance emeritus at the Wharton School of the University of Pennsylvania. http://www.mtgprofessor.com.

National Average Mortgage Rates - 03/22/2007
Mortgage................Rate...Points
30 Year Fixed.........6.16%..0.40
15 Year Fixed..........5.90%..0.40
1 Year Adjustable....5.40%..0.70

Feel free to contact me if you need help locating property in So. California's beautiful, balmy South Bay: Manhattan Beach, Hermosa Beach, Redondo Beach, El Segundo, Palos Verdes.

Thanks, from the So. Bay, where living is beautiful,

Robert Kissig
Real Estate West
Manhattan Beach, CA
310-640-7897
www.KissigRealEstate.com