A relocating buyer told a broker they expect to be transferred again in 3 years. The lender has provided the following loan options: Option A: a 30-year fixed-rate conventional loan. Option B: a 15-year fixed-rate loan. Option C: a three-year interest-only loan. Option D: An adjustable loan with an initial below-market rate. The buyer asks the broker for advice. What action should the broker take?

Recommending the interest-only loan may not be prudent since it does not build equity during the loan period and may lead to a larger principal payment when the term ends. Given the buyer's planned relocation in three years, this option could result in financial strain if they do not plan to sell the property before the principal payments increase.

While discussing relocation plans with an employer may provide context for the move, it does not address the financial implications of the loan options available. The employer is unlikely to have the necessary expertise in mortgage finance to help the buyer make a sound decision regarding their loan.

Calculating the total cost of each loan could be helpful, but it may not address the specific needs of the buyer given their anticipated short-term ownership. A comprehensive discussion with the lender would provide insights into how each option aligns with the buyer's plans, which is more critical at this juncture.