How do loan companies offer low payments?
We're getting our first home and our mortgage will be at about 6.6%. (Not even sure if this is great or not). For about a $320,000 loan, monthly payments are calculated to be over $2500 a month.
Now, how is then that I see these lending tree commercials / ads on the web, that say that you can get a $400,000 loan for only $1334 a month? Boggles my mind but unless interest rates are SUPER low, then I don't see how they do this.