What many people do not know about an ARM is that the larger your margin is, the more your “loan salesperson” earned in commission. Margin is never zero at PAR, but there can be a wide spread.

The NEG AM loans are the worst piece of crap loan ever invented for the borrower. (Best EVER for the lender)
A 5% MARGIN is possible. They pay the highest commissions in the industry, which is the ONLY reason that many people have them and owe more on their loan today than they started with.
They were lied to about that low,low payment.

Simply put, the lender rewards the “loan salesperson” for screwing the borrower. The worse the screw job, the higher commission gets paid. People have no idea.

I’ve seen many crazy loans that people are in because they went to a friend, neighbor, relative, etc. for a “free” loan.

I always tell people my fee, and give them an option of how it gets paid. I’m not looking to pocket a penny that they aren’t told about.

I’ve seen FREE cost people thousands of dollars. With friends like that, who need enemies ???