Quote:
Originally Posted by Boodleboy322
Which lender is underwriting ARMs for customers that do not qualify on a fixed rate mortgage? That sounds like a red flag.
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To clarify, for customers who do not qualify for a particular size of mortgage loan.
To answer your question, mortgage lenders who know that lower introductory rates mean lower introductory payments. Therefore, homebuyers can qualify for a larger loan to fit the dream house that people are told not to let mortgage rates/bad credit/whatever keep them from.