I've found that many people that come to my website are in the midst of trying to buy a house. More particularly, they are dealing with a mortgage broker. Unfortunately, in order to capture the interest of their prospective clients, they tell them that they can get them payments they really can't do.
I'm not saying all mortgage brokers are this way, but when they are dealing with a sub prime (someone with less than perfect credit) customer, they don't seem to be as straight up front. Maybe because they don't want to blow the prospective customer away with a realistic interest rate or what payment that interest rate would net them. They usually forget to tell people that you have to add to the payment property taxes and hazard insurance. Also, if the client is financing more than 80% of the purchase price, mortgage insurance usually to be added.
Many mortgage brokers quote payments based on an adjustable rate mortgage that is interest only! In my opinion, interest only loans should be avoided. Interest rates are on the rise and you could get caught with an interest rate you cannot afford!
Please don't take my word for it. Click here to go to a mortgage calculator from www.realestateabc.com. In this way you will know for sure if people are being straight with you!