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Originally Posted by JFK
"he gets nothing more than a 2/28-3/27"
can you enlighten me to the meaning of that? I presume it has something to do with term ???thanks
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ya the 2/28's and 3/27's are the standard loans subprime lenders give. Meaning the rate is locked for 2 or 3 years. Then the wild nasty fluctuations happen after such time. 99% of the time if you take a 2/28 or 3/27 you will get a prepay penalty also, meaning if you refi or pay the loan in full before the 2 or 3 years they typically charge you 6 months interest ontop of your current payoff. Its brutal, its ugly and it has the ability to wreck you financially. They suck, period. The theory these brokers use is the "Lets use this crap loan so you can get back on track financially and credit wise, then we can get you out of this into a FHA or conventional loan program." This fails many ore times than it happens. If your a subprime borrower the lenders know your unlikely to change your ways. Thats why they pay huge commissions to brokers for doing 2/28 and 3/27 loans. They know most people never leave cause they dont change thier spending and credit lifestyles.
