Wednesday, October 18, 2006

Fed Guide to Option ARM and Interest Only Loans

The Federal Reserve released today a Consumer Guide to Nontraditional Mortgages, specifically detailing the risks and benefits of the Option ARM and Interest Only Products.

The brochure stresses the importace of understanding key mortgage loan terms, it warns of the risks consumers may face, and counsels borrowers to be realistic about whether or not they can handle future payment increases.

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