truewealth's Journal: Truth about 30 yr "Fixed" Mortgages: NOT Fixed

Mortgage Bankers have a Dirty Little Secret. that Secret is there is NO SUCH THING as a "fixed" Mortgage in Reality. A 30 year fixed mortgage for $200,000.00 at 6% in reality can carry a "true" interest rate of 35% or more and fluctates daily. The minimum interest rate you will pay in this scenario is 6% and that is ONLY if you stay in this same mortgage for the full 30 years.

Why?

Because there is a phenomonon called "interest front loading". What this means is that a great majority the interest on a Mortgage Loan in the USA is charged up front during the first 10 to 15 years of the loan...Its true! Ask your friendly neighborhood mortgage banker for an amortization schedule of a 30 year "fixed" mortgage based on 6% with a $200,000 loan amount and you will see that you won't even be putting a dent into the principle loan amount untill about years 8 to 10 of a 30 year fixed...

Statistically the US population does not stay in the same mortgage for longer than 5 to 7 years. Most people are either Refinancing, Pulling cash out of their Equity or are Selling the home , moving into a new home and starting the whole process over again.

So what does this mean?...It means that the Banks NEVER lose....

Now there is a way to break this cycle of this "interest Front loading" phenomonon that the dirty Mortgage Bankers perpetrate on Your average "Joe Citizen"....
Read more here:=> http://www.receivemortgageloans.com/