Do you realize that as a mortgage broker or mortgage banker that every time you recommend an ARM to someone that they might not fully understand the time-table that comes along with an ARM. Don’t get me wrong, I am sure that you tell them about the ARM and all the factors that come with an ARM. However, when you have first-time homebuyers that are in a somewhat desperate situation, I am sure that they will do almost anything to get into a house. But they are not thinking clearly and planning for long-term success. If you take the time to fully educate them as to the pros and cons, then they can make an informed decision and not a hasty one.
