Option ARM loans aren't all bad

Problem was too many borrowers exploited minimum payments

The memory of a no-nonsense conversation, held more than a decade ago, hit home then and is vivid today.

"This probably would not be the loan for a person who planned on making just the minimum payment every month," said the Washington Mutual senior loan consultant. "It’s a great program for borrowers who really might use the flexible payments, but if you stay with the minimum, you are absolutely going to owe more than you borrow."