Re: Is this a sub-prime lender ?

On Sun, 30 Sep 2007 10:31:41 -0400, Gary <none@xxxxxxx> wrote:


This is an ad I ran across and find it interesting because I can't
find one straight-forward word in it. The way I read this ad, I
would think a could with a $32,000 a year family income could afford a
$150,000 mortgage. I can see that a young person with little banking
experience would bite off more than they can chew. -- gj

-----------------------------------------------------------------------
Advertisement --

http://tinyurl.com/27fa9m

Mortgage Rates Start as Low as 5.125%. See APR and Terms Below

Loan Amount Monthly Payment*

$150,000 $641 per month
$200,000 $854 per month
$310,000 $1314 per month
$500,000 $2135 per month

(small print)

The borrower will make six payments of $427, $534, $641, $726, $854,
$1,324, $1,751 or $2,135 respectively and fifty four payments of $646,
$807, $969, $1,098, $1,292, $2,002, $2,648 or $3,229 respectively for
the remainder of the interest only period, and three hundred payments
of $755, $944, $1,133, $1,284, $1,511, $2,342, $3,097 or $3,777
respectively assuming an interest rate of 7.643% (APR of 8.019%,
7.985%, 7.962%, 7.949%, 7.934%, 7.904%, 7.890% or 7.883%,
respectively).

( -- I still don't understand that. How much will they pay after 5
years -- for 300 payments ? $944 ?. If so, that would require an
income of about $45,000. I wonder if they explain that to Jethro and
Daisy Mae, Pedro and Maria and Tyrone and Sholandra ? -- )

Clearly we need a law requiring lenders to administer an IQ test to
potential borrowers. Sadly, Gary, it looks like you will just have to
go on living in that abandoned barn.
.

Relevant Pages

  • Is this a sub-prime lender ?
    ... find one straight-forward word in it. ... would think a could with a $32,000 a year family income could afford a ... Mortgage Rates Start as Low as 5.125%. ... the remainder of the interest only period, and three hundred payments ...
    (soc.retirement)
  • Re: Is this a sub-prime lender ?
    ... find one straight-forward word in it. ... "I would think a family with a $32,000 a year family income could ... afford a $150,000 mortage " ... Mortgage Rates Start as Low as 5.125%. ...
    (soc.retirement)
  • Re: Is this a sub-prime lender ?
    ... find one straight-forward word in it. ... "I would think a family with a $32,000 a year family income could ... afford a $150,000 mortage " ... Outside the slums - where are you going to get a $150,000 mortage? ...
    (soc.retirement)