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by CareyBot

"Bear Stearns is offering what they call a "Secure Option ARM" on which the starting interest rate is fixed for five years. Your opinion?" I have mixed feelings about this new version of a mortgage that is now causing enormous grief among many people who have them. During 2005-2006, about half a trillion dollars of option ARMs were written, and many of those who took them are very unhappy today. No day goes by that I do not hear from option ARM borrowers who are waking up to the realization that they have a tiger by the tail that is soon going to bite them. The very low mortgage payment that sucked them in has resulted in a growing loan balance, and soon their payment is going to jump to the level needed to pay off that swollen balance. The payment increases that loom on their horizons ...