Re: How can mortgage payment be this low?

[EMAIL PROTECTED] (John) wrote in 
<[EMAIL PROTECTED]>:

>Hi,
>
>I have received some loan solicitations that claim to be able to cut
>my mortgage payment nearly in half (A.R.M. 1.25% start rate/3.87%
>APR). How does this work? Am I gonna pay an arm and a leg for the
>points and costs? What's the catch? What's APR anyway? Thanks for
>sharing!
>
>John

Here are a few catches to look out for.
1) Closing costs and fees.
2) Points
3) What is the quoted payment PITI or just PI?
Most rate quotes only quote P + I (Principle and
Intrest) TI (Taxes and Insurance) can easily add
half again to the quoted payment.

-- 
Just my $0.02 worth.  Hope it helps
Gordon Reeder
greeder
at: myself.com