Option ARM rates revealed

I just found this amazing site, which still seems to be online: http://www.optionarmsdirect.com/

Perhaps this is old and these loans aren't actually available anymore. But just for fun, I wanted to compare the "minimum payment" option ARM (which according to Businessweek is paid by 80% of borrowers) to a 30 year fixed jumbo loan.

Option ARM/fixed payment = 35%

And in other news, California home prices have tripled in the last 8 years.

Subprime is really not the end of the story. Option ARM loans were made to borrowers with perfect credit, and they will default, too.

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