When I go onto Yahoo and see this at the top of the main page its no wonder we have a subprime meltdown…
$599,000 loan for only $1,927/mo. No social security number required.
In case you were wondering it links to a Lendingtree page:
http://tinylink.com/?Kjx3I6StIg
I think someone at Lendingtree fell out of their damn tree.
You know that’s a good point. I keep thinking how can they get such a small payment on such a large note??? My payment is almost twice that, and my house is worth almost half that…
Either its magic or they know some “secret” we don’t. :rolleyes
There’s a GREAT explanation of these loans on Youtube.
Go to the search and type in… Option ARM… a video with a woman wearing glasses comes up and she uses a dry erase board to give one of the best run downs of these LOSER loans I’ve ever seen.
Sorry for the long discription, just want to make sure your looking at the right one.
It is one of those “Payment Option Arms” It is amortized over 30 years, like a normal conforming loan. However, your payment option is less than an Interest Only payment for a specified period of time.
THE INTEREST RATE: The interest rate is 1.00% for the first month only. After the first month, it adjusts monthly to the sum of the 12-month Monthly Treasury Average Index 5.022%% as of June 11, 2007) plus a margin of 2.950% for the remainder of the 30-year term of the loan. The interest rate is variable and subject to change, so your payments may increase or decrease each year.
blah, blah, blah
So break out your abacus and your fingers and toes for this one. :deal
By the way, the disclaimers and explanations continue for almost a full page on their site.
THE INTEREST RATE: The interest rate is 1.00% for the first month only.
HA HA. There it is… 1% for one month, these chislers deserve what they get. I just hope the taxpayers don’t have to pay for it.
j
I think we need some gov’t regulation to cut down on deceptive programs like this.