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.





1.25% fixed for 5 years:

There is no such thing. This is an advertisement for the option only
arm. With this type of mortgage loan you have the option of have a
fixed payment for 5 years. 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 then read our page dedicated to the option arm mortgage. If you
would like to apply for the option arm then start here.



Low payment offers:

Get a payment of X- dollars for Large loan amount. 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. 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. Also, the loan is interest only, so you would owe
that much in 3 years if you did not make extra monthly mortgage
payments. Any mortgage company and or mortgage professional can put
together this type of combination. As a mortgage search expert myself,
I would never propose this type of loan to anyone. It does not make
good financial sense. Your mortgage professional should be someone
capable of structuring the best type of loan that makes good financial
sense. Mortgage Search Experts are professionals at putting together
the right loan programs and mortgage rates that benefit you the most.



Low interest and or fee offers

Low ball interest rate quotes happen quite too often and if your
shopping your bound 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 Search Expert that considers all factors and compares real
mortgage rates between 60 lenders to get you best mortgage loan at the
best interest rate.



Get the best mortgage quotes now at www.mortgagesearchexperts.com