I was approved for a 228 loan for my mortgage. Anyone know of his type of loan or where I could find some good info on it? Thanks in advance
2/28 is 2 years fixed, 28 years ARM. ARM= Adjustable Rate Mortgage. Look at the fine print. Get out of it as quickly as you can. Typically there's a buyout penalty. Often it's 3 years or more.
inden1 This is typically a mortgage that is offered to subprime borrowers. The expectation is normally that you will refinance at the end of the fixed rate period, which is 2 years (hence 2-28). Most lenders that offer 2-28's will either have a 2 year prepayment penalty or if they have a longer one will offer a 60 day window to refinance without penalty, The exact terms and prepayment penalty must be explained to you prior to closing, though I would ask now if I were you. The benefit of this type of loan is that you can get into the house, or refinance if that is what you are doing, while you are fixing your credit. Hope this helps you some. fla-tan
