HML for buy and hold.

[Pavel Shemyakin]

Good afternoon my fellow BPers! Hope everyone's day is going great!

I know that it is common practice to use HML for financing flips, but what are the draw backs of using HML to get favorable pricing on a buy and hold then refinance to traditional financing right after?

For example, if i have 20%-25% down payment ready, and qualify to get a traditional 30y fixed, could i theoretically close with HML, get favorable pricing due to it being a cash transaction, then immediately turn around and refi?

Is my logic flawed?

[Herndon Davis]

HML have intentionally high interest rates, high points, interest only and are short term 6 monthts to a year.

Not sure where the advantage is