Predatory Lenders - They're Back

The Predatory Lenders are back in my mailbox. Different tactics, but just as deceptive.

This one is from "Insite Financial Corp." Who is a real estate broker (Ca lic #01522406)

It's offering me more than my original loan, but for a lower monthly payment, claiming to be a 30 year fixed. Today's interest rates are higher than my current loan so I know there's a huge catch in there somewhere.

Looking carefully at the language it says "30 year fixed loan with a payment at 3.25% amortized" odd that it doesn't say "interest rate," and in the next paragraph it says APR or 7.99% which is way over what my loan is and a major red flag.

Turning over the page in search of the fine print, and the "offer" goes from sounding friendly to a financial nightmare.
"New loan is a 30 year fixed with minimum payment option starting at 3.25% for the first year. Minimum payment is available for 120 months [10 years] with the following minimum payment schedule:

Year Amount
1 1074.34
2 1154.92
3 1241.54
4 1354.56
5 1434.76
6 1542.37
7 1658.05
8 1782.40
9 1916.08
10 2059.79

So in 10 years the payment doubles! And what year does it exceed what I'm paying now?
Year 4. Such ripoff artists. Especially since during the years where you're not paying much money, interest in accruing.

Oh and there could be a prepayment penalty in case you had the idea to use just the cheap part of the loan. Run away from these types of quagmire loans.