| Misleading
Mortgage Ads Are Everywhere!
 Don't make the mistake of
thinking that just because the ad you are watching is presented by
a large national corporation or bank that the information they are
providing you is factual. As a long time industry insider,
mortgage banker and holder of multiple certificates in Mortgage
Fraud Detection and Prevention the Director of Operations for
Novation Mortgage presents these short inward looks at misleading
mortgage advertisements.
Advertised Interest Rates
See those rates in the Sunday paper? See those rates advertised
on other mortgage and banking websites? Chances are you may not
qualify for or want that rate. Almost every advertised interest
rate requires you, the borrower, to pay an additional discount points and
fees at closing to get you to that rate. Most lenders charge 4% at
closing to lower the interest rate 1%. For example on a $240,000
loan to lower from 6.5% to 6% the borrower would need to pay an
additional $4,800 at closing. How much would that lower your
payments? From $1517 to $1438 or $79 per month. How long will it
take you to recover that $4,800 it cost you to get the lower
rate? Sixty-one (61) months - that's 5 years and 1 month! Also, you may lose some mortgage
interest tax credit depending on your financial situation. At
Novation Mortgage we don't just stuff you into any loan, we show
you the details and give you the power to decide.
No One Can Do What Countrywide Can Do
False. This national lender may have a different name for it
but we can do it too. What is "it"? No closing cost loans. In fact
any lender can do it. What you will find at Novation that you
will not find at Countrywide is absolute and accurate information
never misleading you. So while this national advertiser may indeed
be able to do what they advertise they actually lie to you in
their ad by claiming no other lender can do it.
Quicken's Exclusive Mortgage Programs
False. This national lender advertises that only they have what
they call the
freedom mortgage. It's a plain Jane Payment Option ARM. Novation
Mortgage probably does something the associates at Quicken Loans
do not do and that is actually evaluate your situation and offer
you a choice of programs. If you choose the POA we want you to
have a very in-depth understanding of how dangerous a negatively
amortizing loan can be if the borrower (you) are not capable of
controlling your spending. It would be my guess that at most
lenders they will simply "put you in" that loan so the originator
can earn a commission or spiff for closing another loan.
Lenox Pays Your Closing Costs
False. You pay them every time. If you don't believe me try
this experiment: Call the lender advertising a no-closing costs
loan and have them send you a Good Faith Estimate (if they do not
also send you a Truth In Lending the GFE is useless but don't ask
them for it, just see if they automatically send it.) When you get
your No Closing Costs GFE and TIL call the lender back and ask
them to send you a GFE and TIL with you paying closing costs. Now
compare the numbers and you will easily see where you are the one
paying the closing costs. Novation Mortgage can also do a No
Closing Cost loan and it may be a good idea for you. Call a
representative today and ask them to compare a NCC loan with
another program and see which one really fits with your plan. At
Novation we'll help you count the break even costs and timeline
to see if a NCC loan will benefit you. |
