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The Straight Truth

By Jennifer Beeston @ Guaranteed Rate Mortgage

By Jennifer Beeston | Mortgage Broker
or Lender in California

The #1 way sleazy lenders trick you on rate


What you see:  A 30 year loan for 2.875% with no points?   Wow that is really good!  I wonder why XYZ bank is so much lower than my lender? 

The Reality:  Xyz is totally conning you. Their rate quote is akin to selling “shoes” with no soles.  It sounds the same and may look the same but it does not have the main feature you want which in this case is a loan with a fixed rate for 30 years

The 30 year loan trick: 
If it says 30 year loan it DOES NOT mean it is fixed for 30 years.  People naturally assume if they see a 30 year loan the company means 30 year fixed rate loan.  Often it is a 5 year arm.  A 5 year arm is an adjustable rate mortgage that is fixed for 5 years and then adjusts over a total term of 30 years.  That is why scammer companies often advertise it as a 30 year loan.  Legally they have to disclose what it really is but generally the consumer sees the low rate and calls before they click on details. Then youi as the consumer will slowly discover you are being taken advantage of.  Skip the drama and avoid being in a Miranda Lambert song.

"White Liar: Truth comes out a little at a time"




Comments

By Jared Jones,  Mon Oct 7 2013, 18:32
Very clever, adding a song to it. Nice
By Jennifer Beeston,  Tue Oct 8 2013, 15:17
makes it a lot more fun
 
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