1% home loan and no closing costs

Warning; Danger, Will Robinson. Watch out for this often misleading type of advertising. The real goal of it is to sound so good that you call.... then you (hopefully) get the disclosure of how these loans work. Two primary keys to 1% loans and No closing costs: 1% is only a teaser type rate which is a Negative payment...so if you make that 1% payment, you're actually increasing the size of your principal balance in today's market. They're called Negative Amortization loans. The other point is No Closing Costs. There are always closing costs... you're paying them one way or another: either up front at closing, by having a higher interest rate and/or margin or by agreeing to a prepayment penalty on your loan. Need answers? I'm the guy: Pat Townsley, Loan consultant: www.PTRE.net toll free: 800-646-5527