Teaser Rate Mortgage Loans

Steve Sailer

04/02/2009

Can anybody think of any reason why "teaser rate mortgages" where the borrower pays an extremely low interest rate for the first two to five years shouldn’t be banned? Aren’t these just ways to lure people who aren’t good with Excel in over their heads into debt? Isn’t home buying too massively serious for the kind of marketing gimmicks that are fine with cheaper products?

By the way, doesn’t Obama’s mortgage bailout plan feature five year teaser rates?

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