About Low-Ball Mortgage Refinance Rate Advertisements
If you have ever shopped for a new car, then you know that the low low advertised price for your auto of choice may not necessarily be the same as the price you are quoted at the dealership. Hey, you want tires with that? Oh, your credit score isn’t over 800? I think you get the point, and unfortunately, many mortgage refinance rate advertisements are not any better.
I just received a mortgage rate advertisement in my email inbox this morning from a major mortgage lending company that gave me a chuckle. The subject line says “Rates drop to 3.59% APR*. Then the message goes on to make sure that I know that I should lock my rate now, before rates rise. Now, those are some really nice folks at that loan company, making sure that they are looking out for my welfare.
Unfortunately, the 3.59% APR asterisk marking does not tell me in the email, what the 3.59% program is, or what the qualifications are. You guessed it, it sounds like the ole Crazy Lenny’s Auto World Emporium sales pitch all over again.
In reality, they probably do have a 3.59% refinance program available, but it’s most likely for an adjustable rate mortgage (ARM) for people refinancing with superior credit and a loan-to-value ratio that is under 80 percent. Heavy discount points are applied, so the lender fees are quite substantial.
Why don’t they just mention that in the advertisement then? Well, I think you’ve got it. First, most people do not want to touch ARM loans any more. Secondly, most people do not have superior credit. Thirdly, most people are refinancing over 80 percent of the value of their homes. Finally, they know that a lot of people would not take kindly to a large lender fee quote.
So, you haven’t visited the Refinance ToolBox, and don’t know these little advertising tricks and decided to apply for this great 3.59% APR refinance home loan. You want a 30 year fixed mortgage, have a decent credit score, and are refinancing 85 percent of the value of your home.
What’s This? You are now told that you are not eligible for a 3.59% APR home loan, and that your real qualifying rate is over 5.0%!! (A 5.0% is actually a great rate that can provide a substantial financial benefit for many refinancing howmowners, but why not just be upfront in the advertisement?)
As the steam evaporates from your forehead, you realize that you’ve been duped. Don’t worry about it, you have a lot of company.
The important point to remember is that you should be very leery about advertised mortgage refinance rates that seem too good to be true, especially if there is no small print in the ad that states what the program is, and what the basic qualification requirements are.
Finally, the question you have to ask your self is …. Do you even want to work with a home loan lender that resorts to trickery in their advertisements, just to get you into their virtual doors? I don’t know about you, but I think I’ll take a pass!
If you are considering a refinance now and need some help, have questions, or need some competitive rate quotes, please check out the popular Refinance Tool Box. Just give a call at 888-850-9888 or fill out a Rate Quote Request online for professional assistance without the aggressive high-pressure sales tactics.
May the Mortgage Refinance Rates be with You!
Refinance Tool Box
I just received a mortgage rate advertisement in my email inbox this morning from a major mortgage lending company that gave me a chuckle. The subject line says “Rates drop to 3.59% APR*. Then the message goes on to make sure that I know that I should lock my rate now, before rates rise. Now, those are some really nice folks at that loan company, making sure that they are looking out for my welfare.
Unfortunately, the 3.59% APR asterisk marking does not tell me in the email, what the 3.59% program is, or what the qualifications are. You guessed it, it sounds like the ole Crazy Lenny’s Auto World Emporium sales pitch all over again.
In reality, they probably do have a 3.59% refinance program available, but it’s most likely for an adjustable rate mortgage (ARM) for people refinancing with superior credit and a loan-to-value ratio that is under 80 percent. Heavy discount points are applied, so the lender fees are quite substantial.
Why don’t they just mention that in the advertisement then? Well, I think you’ve got it. First, most people do not want to touch ARM loans any more. Secondly, most people do not have superior credit. Thirdly, most people are refinancing over 80 percent of the value of their homes. Finally, they know that a lot of people would not take kindly to a large lender fee quote.
So, you haven’t visited the Refinance ToolBox, and don’t know these little advertising tricks and decided to apply for this great 3.59% APR refinance home loan. You want a 30 year fixed mortgage, have a decent credit score, and are refinancing 85 percent of the value of your home.
What’s This? You are now told that you are not eligible for a 3.59% APR home loan, and that your real qualifying rate is over 5.0%!! (A 5.0% is actually a great rate that can provide a substantial financial benefit for many refinancing howmowners, but why not just be upfront in the advertisement?)
As the steam evaporates from your forehead, you realize that you’ve been duped. Don’t worry about it, you have a lot of company.
The important point to remember is that you should be very leery about advertised mortgage refinance rates that seem too good to be true, especially if there is no small print in the ad that states what the program is, and what the basic qualification requirements are.
Finally, the question you have to ask your self is …. Do you even want to work with a home loan lender that resorts to trickery in their advertisements, just to get you into their virtual doors? I don’t know about you, but I think I’ll take a pass!
If you are considering a refinance now and need some help, have questions, or need some competitive rate quotes, please check out the popular Refinance Tool Box. Just give a call at 888-850-9888 or fill out a Rate Quote Request online for professional assistance without the aggressive high-pressure sales tactics.
May the Mortgage Refinance Rates be with You!
Refinance Tool Box
Labels: credit scores, finance, home loans, money, mortgage rates, refinance, refinance rates, refinancing
posted by Jim Bisnett at
2:54 PM
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