HLS… call 100 lending agents today, and better than 90 of them are going to give their first quote based on an IO loan.
Coincidence? I highly doubt it. The likelier scenario is that they are making more money from it. Be it bonuses or whatever, there is a financial incentive built around them selling more IO’s – or else they wouldn’t be wasting theur time pushing them as hard as they do.
Just mentioning “30 YR Fixed” to these guys is met with sighs, and obfuscation. It’s like that let-down you see when you go to a car dealership, and after negotiating the final price of the car, telling the finance manager that you’re paying cash. They get dejected. They just don’t want to hear it. The mortgage lenders keep referring back to the “monthly payment”, and give no consideration to the the true total cost of the loan for the buyer.
