The Pay Option ARM mortgage has become one of the most popular home loans in the USA, and is definitely the fastest growing option in high cost states like California, Florida, New York, New Jersey and Connecticut. While many people love the start rates which can be as low as 0.25%, there are a lot of people who don’t feel comfortable with the possibility of their payments increasing in as little as 1 month on many of the most common programs. The common wisdom is that Option ARMs are incredible products for savvy homeowners and investors, but may be too powerful for the average homeowner to handle. With all of the turbulence in interest rates and the mortgage sector in general this year, Adjustable rate mortgages may be too risky an option for most borrowers, and many are looking for ways to lower their payments and at the same time fix their rate to weather the storm. Since Fixed Rates usually mean higher payments, many homeowners are left wondering what the best thing is to do. Read the rest of this entry »