[montag813]

What they got was an option adjustable-rate mortgage (ARM); the 1.95 percent rate only applied for the first month and rose every month afterwards. "The second month, the interest rate was about 5 percent," said their attorney Kevin Demet. "After a year it was about 7 percent and now it's in the 8s."

Say what you want about shyster lawyers, that is one pretty f**ked up "loan".

[RockinRight]

It’s a negative-amortization loan. There’s nothing wrong with it IF YOU KNOW WHAT IT IS AND HOW TO USE IT. Hint: if you have a decent net worth and wish to improve it, then this loan might be a way to go.

If you’re living paycheck to paycheck, can barely afford the “starting” payment, and have little or no cash reserves, stay away.