Explain Loan Options in Plain English

What You'll Get

A clear, borrower-friendly comparison of two or three loan options — with payment examples and honest trade-offs your borrower can share with their spouse or family.

The Prompt

Explain the difference between [loan option 1, e.g., 30-year fixed at 7.25%] and [loan option 2, e.g., 5/1 ARM at 6.375%] for a borrower with a $[amount] loan who plans to stay in the home [X] years. Show approximate monthly payment difference and explain the key risk of each option. Plain English, no jargon.

Tips

Include how long the borrower plans to stay in the home — it changes which option looks better significantly. Clarify in any email you send that the payments are illustrative, not locked quotes.