Has anyone had experience with homelinkmortgages.com? They are offering jumbo Option ARMs (COFI,MTA,..) with a minimum required payment of 1.25% from 2nd month of the loan with the deffered margin (!!!) during the 5 year initial low-payment period. In other words, on $500K loan your min payment will be about $550! On the first month of the loan they require the full 30yr amortized payment option.Based on that, you certainly build up a substantial neg-am,and can face the recast period (if stick to min payment option every single month) as early as in 2 or 3 years,but who cares if you need to flip a property in that period of time?
It is quite logical that during today's slow housing market, the lenders are coming up with a variety of creative "pick-a-payment" programs, but this one sounds too good to be true! Where is the catch?