May 3rd, 2012 12:37 PM by BILL WILBANKS
It would be hard to believe that anyone who watches television at all today has not seen a few of the national ads on the air for mortgage financing. They are everywhere. If you have, have you or anyone you know ever called on one of them? Were you surprised at how different the answers were compared to the ad you saw. Remarkable that some companies can still get away with running ads so vague that the average person wouldn't know about the multiple caveats that apply and that many of them aren't even the company that would arrange your financing. What do I mean by that? Well many are just a go-between that will send you to various companies through which you would actually apply later if you want to. They are farming referrals. I've called to see what a few of those would offer me and found that they say "we're not the lender nor would they handle your file and the rates advertised have been available "recently" through some of the lenders they refer you to." In other words they advertise a rate they can't offer you, apparently just to get you to call and they make their money by referring you on. Then lately I've seen an ad that tells you "not to be fooled by very low rate ads that come with high closing costs". That's part of the truth folks. Unfortunately what they are doing is trying to ride the negative statement that somehow the lowest rate with standard closing fees is a bad deal and that their higher rate that covers costs in part or fully is the better deal. Either example can be the better loan for a given borrower depending on their needs. All they are talking in this type ad is doing a "buyup" for you; giving you a higher rate and with the additional money paid them by the lender if you take it, they can apply it against your closing fees. That might be your "better deal" if you intend to pay off the loan in a few years (5+/-) since you would not have time to recover the closing costs on the other example through the lower rate and payment it bought you. If however, you are going to be in the mortgage long enough for the lower rate to allow your lower payments paid in to recover the upfront closing fees, you'd be ahead from that point on through the life of the loan. But the ad assumes only one example of the right or "positive" solution to your needs...the one that let's you assume they are the better deal of course. That's just another reason why a local loan representative that you can work closely with will be able to offer you the full pallet and doesn't have to play games to get you in the door. Not someone who doesn't even live in the state. That's why my customers refer business my way on a regular basis, knowing that I look out for them and those they refer to me to give them the full selection for a proper decision. Call me today. There is a very real difference in my service.