1% Mortgage Loan No Bargin

I just heard an ad on the radio for a 1% mortgage loan. I was driving and could not write down the website, but did managed to catch the verbal "small print" from the ad. Yes, the 1% rate is an introductory rate for 30-days and the payments are fixed for the first year. What does this mean?

I'm presuming that after the first 30-days, the loan adjusts up based on the prevailing interest rates. If the payments are fixed for the first year, what this means is that you are losing equity every month for the first year since the low payments can't even cover the interest.

I have no idea what happens after the first year, but you know the mortage company will need to make up the interest somehow.

Bottom line -- make sure you understand ALL the terms of the loan before you sign.