I often start my morning review of current economic events courtesy of www.CNN.com.  This morning an interesting mortgage payment jumped out in one of those banner type mortgage ads. I honestly can’t believe this type of mortgage Internet marketing still goes on in today’s damaged mortgage market.

The ad read that you could borrow $180,000 with a Florida mortgage and have a payment well under $699 per month. This type of mortgage marketing may get clients to call, but please beware – this is most likely a negative amortization mortgage.

Yes, the payment may be less than $699 per month, but the interest owed on the mortgage is being added on top of the principal balance each month.  Every time you pay the low mortgage payment due; you owe more than the previous month. 

I have consulted with many Florida residents who read similar ads and unknowingly obtained this type of mortgage. They learned about all of the crucial mortgage details after closing, and that’s simply too late.

And there’s more bad news!  The interest rate ( not the mortgage payment rate) is adjusting every day.  And there is usually a prepayment penalty with this type of mortgage. 

Always inquire with a seasoned Florida mortgage professional about such seemingly low payment options. We must always look at the “catch” with these advertised programs.  A Florida mortgage professional will review better options that will place you into a safer conventional type mortgages.  Call our office or email us and discuss your options today; 888.399.0520.

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