What is a mortgage “honeymoon” rate?
Honeymoon rates for mortgages. These can best be described by a parable. Back in the early 1960’s the Ford Mustang was released. It brought car buyers streaming into the showrooms, just to have a look. In fact it was such a “puller” that every Ford dealer had to have a red Ford Mustang in the front showroom window. Guys would drive by and say “Wow honey, look at that low sleek number!” They would go into the showroom and want to test drive this baby. Then the dealer would step in and say, sure, but first lets make sure that this beauty is the one for you”. Before you knew it this guy was the proud owner of a shiny new Ford Falcon Station Sedan, complete with a V8, and a roof rack, [for the camping trips that the salesperson said he was going to do], that cost more than the Mustang. He would go to bed happy, but when he woke up in the morning, he would look out at and see a still shiny new, but now it looked more like a big fat ugly petrol guzzler sitting in his driveway. He wondered wh
