Real Estate Trends: About the SMALL PRINT
Posted October 20, 2020 in Real Estate Trends
Welcome Jerud Martin to the team of experts on Real Estate Trends! I enjoyed your contribution last week!
This week, I’d like to discuss the details about interest rates. I get inquiries about some really low rates that seem to be too good to be true. That is the true part that these offers often are too good to be truthfully presenting themselves.
Earlier this year in April, buyers were locking rates to the tune of 10,000 more rate locks for the same week over last year. Low interest rates created lots of activity.
You may be getting offers in your mailbox with super low interest rates. Thank you for sharing those with me. I’ve discovered many of the rates that appear seem better than anyone seems to have to offer. In one case there was a 2.5 point buy down. The interest rate was a great offer, but the points killed the deal. In another offer I reviewed, I had to go to a website to read the small print about the offer. Start looking at points. It’s in the small print usually.
These offers have caught people off-guard and can be deceiving unless you read the assumptions on the loan offers. The Consumer Financial Protection Bureau reports that deceptive mortgage advertising is happening. Mortgage lenders must follow the Truth in Lending Act as well as the Mortgage Acts and Practices Advertising Rule; however, misleading information can find its way to consumers even while looking very official. In fact, companies are ordered by the CFPB to stop misrepresentations of interest rates and estimated monthly payments, but often only after a person has had a bad experience.
One of the best ways to make sure that everything is on the up and up is to interview your mortgage lender and ask about the team and how that team is connected to your community. It makes it much easier to cross the t’s and dot the i’s. Next article, I will tell you more about Gretchen and Mariah who helps me at Peak Mortgage in giving full disclosure.
Think smart about financial health. Choose an advisor who’s local. Call or email MPattullo@PeakMtg.com
We lend where we live,