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Teaser Rate Mortgage Loans
Thumb sailer
April 02, 2009, 04:20 PM
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Can anybody think of any reason why "teaser rate mortgages" where the borrower pays an extremely low interest rate for the first two to five years shouldn`t be banned? Aren`t these just ways to lure people who aren`t good with Excel in over their heads into debt? Isn`t home buying too massively serious for the kind of marketing gimmicks that are fine with cheaper products?

By the way, doesn`t Obama`s mortgage bailout plan feature five year teaser rates?