subprime rate reduction loans for 30 yr fixes

[promortplanner]

How familiar are people out there with Countrywide's rate reduction program on the subprime side. There was a time when I exclusively used this program and did a lot of business. Floor rates were 5.99% on 30 year fixes and if you paid your payment on time every year - your rate is reduced by .375% per year for four years (4.5%). Knocking the rate down by 1.5% by the end of the 4th year. Now subprime borrowers are picking up this loan again with qualifying floor rates on the 30 yr fix rate reduction loan at 7.5% - essential getting you to 6% at the end of 4yrs on a 30 yr fix if you pay your payment on time.

LTV goes all the way up to 95% depending on compensating factors. You'd have to check with an AE from Countrywide to see details on fico requirements.

Great loan - let me know your thoughts.

[OregonLO]

I have talked to my AE a little bit about this loan. It's great for some people. It at least gives them an oppurtunity to get their rate down over some time without having to refiance. I haven't actually used it as I've found some better rates elsewhere that have made it worth it to not use it. But I'm sure here in the near future I'll put some people on it.