Wednesday, August 17, 2005

Ad for Loan:

Here is the home mortgage advertisement that I found off of a link from the front page on

So what are some of the terms and conditions?

Start rate of 1.00% is fixed for the first 30 days. Fixed payment option is available for the first 12 months. Terms of the payment are based on a margin of 2.10% plus the 1 month MTA Index (2.022% as of February 16, 2005). APR of 4.27% and payment of $643.28 per month is based on a 30-year term, $200,000 loan amount at 1.00%, and may change if the index adjusts after the first 30 days. If minimum payment option is selected, deferred interest may accrue. Interest rate quoted assumes a credit score of 620+ with a loan-to-value (LTV) of 80% on a primary residence. The APR and payment will vary based on the specific terms of the loan selected and verification of information and credit. Rates are subject to change without notice.

This exotic home loan the interest rates adjust after a mere 30 days. It is completely absurd. Where is the corporate responsibility? Where is the personal responsibility? If I were a potential buyer, I would refuse to even do business with a company that offers such absurd loans products. The exotic mortgage loan peddlers are being squeezed by rising short term interest rates. Many of these exotic home loan peddling companies deserve to be squeezed into oblivion.


  1. David,

    It's obvious that these are desperate times for buyers. Many people will do anything they can just to get into a house. But, I believe that these are desperate times for lenders too. They are being squeezed by the flattening yield curve. I believe it is loans like this that will come back and haunt regulators and tax payers.

  2. So what you are saying is how much wood could a woodchuck chuck if a woodchuck could chuck wood?

    That is just insane in the membrane.

  3. I hope the bubble bursts on that guy

  4. That guy owns Ticketmaster,, Expedia,, and Lending Tree. They also operate under the name LendingTree Loans in addition to Home Loan Center...hmm conflict of interest?

  5. i went with home loan, they approved us we gave them a 400 dollar lock in fee then they drew it out over the last day, kept our money and said we weren't approved. now we can't get our money back. they said our credit wasn't good enough even though 4 other's are willing and waiting to finance us. please don't anyone go with them until you read the fine print that you need magnifiers to read. the stretch it past the lock date and keep your money.

  6. dont ever give a mortgage co. an upfront fee for ANYTHING!