Misleading Mortgage Advertising Scams
Just search a little online and you'll find many advertisements as the ones
you'll see below. Most mortgage companies feel that they have some kind
of low payment offer to lure you in. Most of these "offers" are not financially
sound loans or at least don't make much financial sense.
Just search a little online and you'll find many advertisements as the ones
you'll see below. Most mortgage companies feel that they have some kind
of low payment offer to lure you in. Most of these "offers" are not financially
sound loans or at least don't make much financial sense.
| I have see some misleading ads over the years...but these take the cake! Why do they think dancing people or a shaved head will help sell a mortgage anyway? Call me now and I can arrange a mortgage planning session. So call me now at (888) 956-7060 Talk to you soon, Paul |
| Call to find out, "HOW YOU CAN FINALLY STOP DEBT FOREVER!" 1 (888) 956-7060 ext. 222 |
Low interest and or fee offers:
Low ball interest rate quotes happen quite too often and if your shopping
you will to run into it. This is done everywhere.
Let's first address this issue on the internet, where your mortgage rate
search may start. There are many web sites dedicated to interest rate
postings by mortgage lenders and mortgage brokers. Unfortunately many
mortgage companies are posting rates that simply don't exist. Next is the
quote over the phone. Just because you talk to a live person doesn't mean
that your getting an accurate quote. Work with an Mortgage Planning
Specialist that considers all factors and compares real mortgage rates.
SEE: The right way to shop for a mortgage
Low ball interest rate quotes happen quite too often and if your shopping
you will to run into it. This is done everywhere.
Let's first address this issue on the internet, where your mortgage rate
search may start. There are many web sites dedicated to interest rate
postings by mortgage lenders and mortgage brokers. Unfortunately many
mortgage companies are posting rates that simply don't exist. Next is the
quote over the phone. Just because you talk to a live person doesn't mean
that your getting an accurate quote. Work with an Mortgage Planning
Specialist that considers all factors and compares real mortgage rates.
SEE: The right way to shop for a mortgage
Low payment offers:
Get a payment of under $1,698 for a loan amount of $510,000. How can
you get such a low payment? Is this real? In this type of marketing strategy,
the answer is yes (if you qualify) but your answer should be no thanks.
(SEE ADS ABOVE)
The most common and lowest payment comes from advertising the option
arm mortgage which has a low payment but not low rate. Some mortgage
companies are using 3 year or 5 year adjustable rate mortgages with a buy
down to make the payment attractive. I'm Ok with mortgage companies that
us using an adjustable rate program that allows for lower payments but I
can't tolerate mortgage companies that use language that makes this loan
appear better than what it is.
Quicken Loan is advertising "Smart Choice" and shows you a low payment.
At the bottom of the page, disclosures are required in which it says: 3 year
adjustable rate with 1.75 points due at closing to give you a 5.5 rate with
an APR at 6.70% based on a 150,000 loan amount. You don't have to be a
mortgage expert to see that is not a smart choice.
"It does not make sense to pay high fees for a loan
that you will have short term."
Most people decide that they will refinance or move before the adjustable
rate is set to change. If that is the case, will you recoup the $2,625.00 in
points that you were charged? The answer is NO.
Your mortgage professional should be someone capable of structuring the
best type of loan that makes good financial sense. Mortgage Planning
Specialist are professionals at putting together the right loan programs that
benefit you the most.
Get a payment of under $1,698 for a loan amount of $510,000. How can
you get such a low payment? Is this real? In this type of marketing strategy,
the answer is yes (if you qualify) but your answer should be no thanks.
(SEE ADS ABOVE)
The most common and lowest payment comes from advertising the option
arm mortgage which has a low payment but not low rate. Some mortgage
companies are using 3 year or 5 year adjustable rate mortgages with a buy
down to make the payment attractive. I'm Ok with mortgage companies that
us using an adjustable rate program that allows for lower payments but I
can't tolerate mortgage companies that use language that makes this loan
appear better than what it is.
Quicken Loan is advertising "Smart Choice" and shows you a low payment.
At the bottom of the page, disclosures are required in which it says: 3 year
adjustable rate with 1.75 points due at closing to give you a 5.5 rate with
an APR at 6.70% based on a 150,000 loan amount. You don't have to be a
mortgage expert to see that is not a smart choice.
"It does not make sense to pay high fees for a loan
that you will have short term."
Most people decide that they will refinance or move before the adjustable
rate is set to change. If that is the case, will you recoup the $2,625.00 in
points that you were charged? The answer is NO.
Your mortgage professional should be someone capable of structuring the
best type of loan that makes good financial sense. Mortgage Planning
Specialist are professionals at putting together the right loan programs that
benefit you the most.
"The interest rate will vary as soon as one month after
you take out your mortgage loan."
This is an adjustable rate mortgage. The average current rate on this
program is over 7% right now. Even if this is the type of loan that you are
searching for, steer clear of any company that is advertising in this
manner. Don't expect a company that advertises this way to be upfront
about any other aspect of this mortgage loan or any other mortgage loans
that are offered. Many mortgage companies have lured many homeowners
into this type of loan (Option Arm) by false advertisement and/or failing to
disclose the disadvantages of this mortgage.
"Don't be fooled by this type of advertisement and
don't work with any company that promotes this."
Any mortgage company that has to mislead you to get you to apply is bad
news. Get the all the facts on the option arm loan.
you take out your mortgage loan."
This is an adjustable rate mortgage. The average current rate on this
program is over 7% right now. Even if this is the type of loan that you are
searching for, steer clear of any company that is advertising in this
manner. Don't expect a company that advertises this way to be upfront
about any other aspect of this mortgage loan or any other mortgage loans
that are offered. Many mortgage companies have lured many homeowners
into this type of loan (Option Arm) by false advertisement and/or failing to
disclose the disadvantages of this mortgage.
"Don't be fooled by this type of advertisement and
don't work with any company that promotes this."
Any mortgage company that has to mislead you to get you to apply is bad
news. Get the all the facts on the option arm loan.
1.25% fixed for 5
years:
This is not exactly
accurate. This is an
advertisement for the
option arm. With this
type of mortgage loan
you have the option of
have a fixed payment
for 5 years.
| Got a question? Call me at (888) 956-7060 or contact me NOW! |
| Paul Spenard |
| The Local Home Loan Specialist |
|
| Mortgage scams that promise to cut your payments in half |