HSBC and now another mtg lender have excitingly described this type of loan which allows a person to get deducted interest rates over periods during which the mtg loan is paid as promised.
Is this a bait and switch tactic?
I have a 720 FICO but am two years out of CH13 (discharged 2004, completed).
I want to sell a home I live in (neighborhood is changing for the worst with unsavory people moving in and I am unhappy here) and owe 59,000 on a home worth about 200,000. A townhouse I am interested in is 230,000 and in good shape (will have home inspector go through it if I can find financing I am comfortable with). The mtg broker is telling me he can get a 6.1 fixed rate with pay-right option.
I really want to stay with Wamu and a conventional loan but the loan officers and mtg broken keep directing to these Pay-right mtg plans.
Is there someone here familiar with this? Thank you for your time.