Posted By: Chocaholic
3 year or 5 year ARM with Teaser rate - 09/15/08 11:44 PM
Help.. my lenders are wanting to offer a 3 or 5 year ARM with a 12 month teaser rate.. what disclosure or other pitfalls should I be on the look-out when designing this product (if I can't convince them otherwise)?
Basically the product would be 3 years fixed (during this period the first 12 months would be at a fixed teaser rate) then at the end of 3 years or 5 depending on which they go with.. the loan will be an ARM.. Vendor says our system can disclose this but thought it might be deceptive/or misleading...UGH!!! creativity in this marketplace is killing me!
Basically the product would be 3 years fixed (during this period the first 12 months would be at a fixed teaser rate) then at the end of 3 years or 5 depending on which they go with.. the loan will be an ARM.. Vendor says our system can disclose this but thought it might be deceptive/or misleading...UGH!!! creativity in this marketplace is killing me!