Homeowners targeted by fraudulent advertisements
April 4, 2007 | Mortgage | 
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The California Association of Mortgage Brokers (CAMB) has issued a warning to homeowners to beware of advertisements claiming they can relieve you of your high payments and can qualify you for a 1% interest rate even with bad credit. This is simply not true.
It takes good credit to qualify for a 1% teaser rate (which is a negative amortization loan) and there are limitations on the loan to value ratios allowed. Apparently there has been a significant increase in the number of these ads showing up in homeowners mail boxes and on their faxes. These ads are misleading to say the least. Beware of these claims, especially if your credit is sub par or if you have little or no equity in the home.
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