In 05 and 06 some mortgage brokers were steering people with good credit into adjustable rate sub prime mortgages with horrible terms. They did it to get a large commission. They used salesmanship and every kind of excuse. They told the home buyers that they would be calling them in a year to refinance. (To scam a second commission). The payment amounts were a temporary lock, that only increased afterward. Many of the sub prime companies were later shut down or under fraud investigation. It created the sub prime melt down and real estate crash. One broker who engaged in this activity was Mortgage Broker-Branch Manager Tim Sullivan at Tripple AAA Mortgage in St. Petersburg, Fl. I went to him as a first time buyer in August of 06. I had a steady job, credit score of over 700 and no debt. Durring the loan process he spoke only of conventional loans, such as FHA. The sub prime switch came at the end. He used some dirty tricks. He insisted on using his own appraiser and talked me out of seeing the report. It came in lower than the loan amount. His pitch about being temporary and refinancing to very good rate in a year was part of the hook that got me to accept it. I didn't see any of the papers or terms until the closing table. It was hurry up and sign. The lender was the now infamous New Century Mortgage. The terms are very bad. I cannot refinance or sell. Tim Sullivan moved to Allstate Mortgage. He was arrogant and strictly out for himself. I do not reccomend dealing with this individual.
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