What You Need To Know About Mortgage Interest Rates
Did you ever see an ad on TV for a car and couldn’t believe how low the monthly payment was so you rushed to the dealership to find out it was too good to be true? The same thing happens with mortgage interest rates.
The purpose of an advertisement is to get you to call and there is an asterisk for just about everything. If it is too good to be true it normally is and if you don’t read the fine print you could end up hurting yourself.
In the world of mortgage interest rates lots of times the quoted rate includes paying discount points to buy the rate down, requires a large down payment, has an unrealistic timeframe for the interest rate lock period (the shorter the lock period the better the interest rate), etc. And sometimes someone advertises an interest rate that doesn’t yet exist hedging the market hoping rates improve and even worse they are purposely quoting a rate below what they can offer knowing you most likely won’t be getting a loan that day.
You have to be so careful especially in the Fort Lauderdale and South Florida area where mortgage fraud runs rampant. The most important thing to understand is that a mortgage is much more than an interest rate and no matter what product or service you are buying if it’s cheaper you are giving something up. With a mortgage you won’t know if that is service, advice, expertise, or honesty until it’s too late.