I received an "Urgent Notice" from America Premier saying I was pre-approved to participate in a special program.
They try hard to make you think this came from a government agency. The from address says it is from the "Administrative Offices NAPF/OV". At the top, on the right side, is a small piece of the text from "Bill H.R. 3915 (e)". Bill 3915 only passed the House a year ago and never got to the Senate, so it's not a law yet.
Next it said that my current monthly payment of $1,515 (I have 30-yr fixed at 5.5%) could be converted to a 30-yr fixed with a monthly payment of $910. Or, even more incredibly, to a 15-yr fixed with a monthly payment of $869!
Note that right now the prevaling rates for 30-yr fixed loans from other lenders are from 6.5% to 7%.
However, in the very tiny print, you see this: "30yr Fixed Program APR based on 4.6% - 5.5% IO on loan amounts up to $2,000, 000 with an annual cap of 2% and lifetime of 10.9%.
Guess what? The "30yr fixed" they talk about is not what everyone else in the world would consider a 30yr fixed. They have their own definition. It's really an Adjustable Rate Mortgage!
This is outrageous misrepresentation and this company should definitely be investigated fully by an appropriate state or federal agency.
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