Mortgage Realty Check

You may have seen advertising with mortgage companies advertising interest rates far far below national averages. You may have seen advertised rates at even 1% when the federal funds rate is at 4% and the prime rate is at 7.50%. These are not true interest rates. They may be introductory interest rates good for a month with a big buy down or they may be starter payment rates which can incur negative amortization.

You may have seen advertising and or talked to mortgage brokerage firms who claim that they can finance any one who is above ground and still breathing. They are lying. It is simply not true. Do not believe these people or waste your time with them. Demand straight answers - not bait and switch tricks.

You may have seen advertising for mortgage companies who claim to sponsor this or that, including sporting events, concerts, movies, etc. All this means is that they advertise during these events. Their advertising budget may be substantial. This all contributes to their overhead as does the layers upon layers of branch managers, district managers, regional managers, presidents, vice presidents, etc. etc. etc. You should ask yourself, "what does this do for me?" These advertising and overhead costs MUST be passed on to the consumer if these companies are to remain in business. There is no other way. You owe it to yourself to ask, "what would I rather have - fancy advertising and a sponsor of numerous sporting and entertainment events, or a lower rate and better terms on my mortgage?"

Example of a Bait and Switch "In the Mail" Tactic -

I received this in the mail from a "mortgage company" saying I that have been preapproved. This means that I have applied and it has gone through underwriting. This is simply untrue. I never applied, it never went through underwriting, and my house is not worth even half of $555,750.00.  Consumer BEWARE!!!

Click the following links to read news about mortgage companies questionable practices -

News is from independent sources and is not endorsed or gathered by us. You must make up your own mind as to the facts in these stories.

Browse Our Report Library

Got a Question? - Click Here

Top of Page

 Return to Homepage

                    Call 860-225-5731/712-5553

Information on this site is deemed to be accurate but is not guaranteed. When in doubt, consult your loan officer, tax professional,  attorney, realtor, or other  professional with specific questions or concerns.

Broker only, not a lender