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.