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February 17, 2006
What is the 1% or 1 250% Mortgage Interest Rate All
This low start rate or what we call a "teaser rate" is an option payment that the lender will allow you to pay for the first year you have the loan. But what they have to fully explain to you is that, if you choose that 1% mortgage rate option, you will have a deferred payment that will be added to your mortgage balance. That is called a "Negative Amortization Loan" which means if you choose the low payment option there is an ability to increase to 115% of your loan
From What is the 1% or 1 250% Mortgage Interest Rate All
Posted by Peter at February 17, 2006 11:55 AM
