Home Buying

[iloveboost]

But what about the online ads that said I can have a $500,000 house for $1,500 per month??!!?!?!!!

Good info here.

[Jaimecbr900]

But what about the online ads that said I can have a $500,000 house for $1,500 per month??!!?!?!!!

See, this is exactly what screws people up. They see these TV and internet Ads promising all these incredible rates and payments. What people fail to do is use common sense. When you see SOOO much tiny writing at the bottom of the screen that it has to SCROLL........Ummm, HELLOOO, There's your first sign that you should look DEEPER and not take it for face value.

I've seen some of those ads using my TIVO. Just out of curiosity I stopped it and read some of that junk. You wouldn't believe all the "disclaimers" and "conditions" anyone has to meet to get that teaser rate. It's unbelievable. This is where lenders get their bad rep from, bait and switching.

BTW, those ads are really for what we call "negative Am" mortgages or really really short term "teaser" rates. A negative Am mortgage is one where you are eventually owing MORE than your house is worth, hence why you have such a low payment. The "teaser" rates are only good sometimes for as little as 1 month. Yes, 1 month. That gets them out of being sued for false advertising.

So like I said, and I know this doesn't apply to you, beware of what you see on TV and the internet. Ask somebody that really knows and can explain it to you in terms you can understand. Hell, I could use fancy terms and confuse the piss out of you too.....

Good info here.

Thank you.