“LOW INTEREST RATE” INTERNET ADS
Mortgage Banker
Richard Blair
Published on February 17, 2021

“LOW INTEREST RATE” INTERNET ADS

Whether you are starting your home buying journey, or refinancing, your current home mortgage, searching “the lowest rate”‘ on the internet for your home loan may not be the best strategy. That is because choosing the “lowest” interest rate may not necessarily be the best option and the wisest long term financial decision.

Verify my mortgage eligibility (May 20th, 2022)

Mortgage rates advertised by some internet lenders can be confusing to understand. The lender may advertise a low interest rate, but when you read the fine print there can be an additional, and substantial, closing cost to choose that rate.

When you pay an additional cost to get that advertised rate it is called a Discount Fee, or Points. If your mortgage loan was $250,000 and the cost for  the interest rate was 2 Points, the additional cost for the “low rate” would be $5,000. That additional cost alone may make buying a home unaffordable.

The interest rate advertised must also show the Annual Percentage Rate (APR). The APR represents the true of cost of your home loan. You can use APR to compare lenders, which will save you money when buying or refinancing.

Verify my mortgage eligibility (May 20th, 2022)

Before you ever pay points for a lower rate make sure to calculate the amount of time it will take to recapture that cost through the lower payment. Many times choosing a slightly higher rate with no points is a better financial option.

Carefully check the fine print disclaimer in the ad. The advertised rate may be restricted to a certain credit score, like scores over 740, or require a 20 per cent down payment.

After searching on the internet for hours you may respond to an ad for  an unbelievably low interest rate.  Often the ad is really an internet lead site that sells your contact information to other lenders. Get ready to be bombarded with phone calls, day and night.

Verify my mortgage eligibility (May 20th, 2022)

Buying a home is stressful enough, make the wisest financial decision for you, or your family. by asking a local, trusted lender for a customized loan plan. A Loan Plan helps you select the best lending option with an affordable interest rate.  

 

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Mortgage Banker
Richard Blair Mortgage Banker
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(480) 542-1085