Beware of Mortgage Honeymoons

Honeymoons are great things, right? Well, not in mortgages unless you understand what you are getting into. Many lenders will offer honeymoon interest rates on loans to get you as a customer. The rates are often very low, maybe one to two points below the standard interest rates being charged on loans. Sounds good, right? Well, they honeymoon ends in six months to a year and your rates go up to the standard interest rates or above them. It can be a shocker and make meeting your repayment obligations very difficult.