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Subprime mortgage loans had low "teaser" rates to lure borrowers.
Many of these loans were made with low teaser rates that would later increase.
This is especially true for adjustable-rate mortgages with initially low teaser rates.
Sort of like credit card offers, many alternative power deals come with a low "teaser" rate that goes up later.
Exceedingly low "teaser" rates that move up rapidly in later years were another feature of the new loans.
He said the technique was much like the mortgages with very low teaser rates that proliferated during the housing bubble.
Loans with unnaturally low teaser rates that expired relatively quickly were more responsible for borrower defaults and foreclosures.
Especially onerous were the adjustable-rate mortgages, which offered low teaser rates that spiked in later years.
In some cases the low teaser rates allowed them to pay less than what they might otherwise have paid in rent.
At least they didn't have an adjustable-rate mortgage, with no money down and a low teaser rate that would soar in two years.
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Do not accept low teaser-rates (they're temporary), personal desire (lust) and lack of responsibility by buyers and sellers cause your bad loan.
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