Beware of two things when contacting Quickenloans.com
1. Do not give them any money up front if they ask for it. I mistakenly authorized them to charge my card $500 before any service was performed. I'm working with them on getting this money back because the advertised payment amounts are misleading and I will not do business with them.
2. They adverstise that you can pay $950 a month on a $300,000 loan. This is based on the current libor rate plus a margin. What they don't tell you up front is that your initial rate is based on the 10 year Treasury plus a margin, not the libor rate. The libor index is only used after your loan moves passed the locked period.
Although your payment is interest only for a period of usually 3 to 5 years, your interest only payment may really be $1200 - $1300 (not including taxes and insurance), not $950 per month.
After the locked period, your loan will require interest and principle based on the libor rate plus a margin. My guess is that the libor will be quite a bit higher in a few years when all of these interest only loans move passed the locked period.
3. If you really need to do this type of a loan, try Lendingtree.com. At least you'll get several sources to choose from and you may do better by going threw a bank that may not charge you the same up front loan points and especially avoid anyone who wants to charge you an up front fee!
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