Great Internet Mortgage Rates ... A Classic Bait and Switch
http://www.setthestageforsuccess.com/articles/12390/1/Great-Internet-Mortgage-Rates--A-Classic-Bait-and-Switch/Page1.html
Chris Kostoff
Chris Kostoff is the president and CEO of Mortgage Direct Corporation. He has been in the business for 11 years and all of his business is based on referrals. He was ranked in the Top 200 originators according to Mortgage originator Magazine 2006 doing over $78 million in loan volume. He resides in Coto De Caza with his wife Anne and 2 daughters Antonia and Brooklyn. He is a graduate of Vanguard University where he earned a BA in communications. In his spare time he enjoys spending time with his family, playing basketball and reading.By Chris Kostoff
Published on 07/13/2008
Recently I had a potential client tell me he was shopping for a loan on
the internet. He told me it appeared the internet had better rates. Upon further investigation however, it seemed that the loan package he was seeing was packed with hidden fees that made it considerably pricier (in the long run) than anything I'd showed him. How do they get away with that?
Recently I had a potential client tell me he was shopping for a loan on
the internet. He told me it appeared the internet had better rates.
Upon further investigation however, it seemed that the loan package he
was seeing was packed with hidden fees that made it considerably
pricier (in the long run) than anything I'd showed him. How do they get
away with that?
Home loan rates are influenced by mortgage-backed securities. Because of that, rates can’t be much different from one lender to another. While many may advertise great rates, the reality is that fees and points are often required to get to that rate ... if you qualify ... resulting in a higher total loan cost.
Translation: if one lender’s rates are much lower, chances are you will pay for it somewhere else.
Maybe more important than even rates right now is the ability to close the transaction. Because of the drastic changes in the lending environment, guidelines change by the minute. You don’t have to go far to hear some horror story about a loan that was promised and the lender couldn’t deliver.
I always suggest sitting down with a mortgage professional face to face. A mortgage is your biggest financial liability. It should taken seriously. Talk to a professional then make an educated decision for your financial future.
Home loan rates are influenced by mortgage-backed securities. Because of that, rates can’t be much different from one lender to another. While many may advertise great rates, the reality is that fees and points are often required to get to that rate ... if you qualify ... resulting in a higher total loan cost.
Translation: if one lender’s rates are much lower, chances are you will pay for it somewhere else.
Maybe more important than even rates right now is the ability to close the transaction. Because of the drastic changes in the lending environment, guidelines change by the minute. You don’t have to go far to hear some horror story about a loan that was promised and the lender couldn’t deliver.
I always suggest sitting down with a mortgage professional face to face. A mortgage is your biggest financial liability. It should taken seriously. Talk to a professional then make an educated decision for your financial future.