Thursday, March 13, 2008

I thought this stuff was all gone!

Anyone notice this ad? I saw it at the top of the blog today. I thought these types of loans were all long gone.

Here's the fine print,

*A monthly payment of $832 is based on the borrower making an interest-only payment on a $235,000 adjustable rate, 30-year mortgage loan with an initial interest rate of 4.250% (5.770% APR) and with $9,428 in fees and points due at closing.

The interest rate is fixed for 5 years and adjusts after the initial 5 year period. The interest rate continues to adjust annually thereafter, and your loan payment may increase or decrease depending on current market conditions. During the first 5 years of the loan, you may make interest-only payments or pay interest plus as much principal as you would like. After 5 years, principal and interest payments are due, and your monthly payment will increase to $1,540.07, assuming an interest rate of 6.18% (calculated at the 1 year Libor index rate of 3.93% plus a margin of 2.25%). Actual mortgage payments will vary based upon your individual situation and current interest rates, and these loan terms assume you pay all closing costs out of pocket. This loan may not be available in all states, and not all consumers will qualify for these monthly payment terms. These terms are available for a refinance loan on your primary residence with a loan-to-value ratio of 80%, and a credit score between 650 and 719. Other restrictions may apply. Until you lock your rate, APR and terms are subject to change without notice.


Tyrone said...

Off-topic; what do you think?

Home speculators strike gold in California
Lot 132 was a five-bedroom family home with a pool and three-car garage on La Salle Circle, Corona, a pleasant middle-class suburban community east of Los Angeles.

It was expected to fetch some $400,000. In the end Cornelius Foster and Debra Moore paid $500,000 for it; still less than the $700,000 it was originally valued at.

"We're very excited," Cornelius says. "It's got a pool and we're looking forward to getting in and fixing it up.

"I'm smiling today."

Yet they are also aware of the house's history.

golfer_X said...

Fools Gold! I know that street and those are big homes on big lots, 1/4 acre. But the even bigger homes on bigger lots right behind it in the Norco Hills area are already down under $500k for some of the REO's. That will kill the prices of the smaller homes down where this guy bought.

MLS P620270
1065 La Salle Circle
4 bedroom, 2933 sq/ft
with pool
Listed for $350k

SpicymCHaggis said...

Don't these idiots do any research before they plonk there fat asses down on a seat at the auction. You can EASILY get a brand new 3000 s/f home in Corona for FAR less than 500k. There are probably 500 repo's in Corona that would be a better deal than he got at that auction. He should pray the appraisal comes in under 500k so he can't get a loan.

ButterMonkey said...

Me thinks that all of the auction buys will cause another wave of foreclosures in a year or two.

Grab your surfboard everybody!

ice weasel said...

Although the volume of junk mail (both digital and dead tree variety) has slowed down, I'm still getting regular offers to refinance and still a lot of online banners claiming to drop your house payment. Whoever is paying this crap must have money to burn but then, that's really the byline of the larger story isn't it?

Money to burn.

I like it.

snob from morgan hill said...

GX, delete this sucker "akinogal" there is some stupid link could be dangerous. Damm Spammer!