Mortgage Tips You Want to Avoid

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I was out searching on mortgage tips again. These big websites must have a mortgage tips handbook (and not a very good one) where they just slap up the same information.

For example, on the federalreserve.gov site it says no cost mortgages “usually involve higher rates”. They do not usually involve higher rates, they always involve higher rates. This was exactly the same thing I read on the fdic.gov website a couple of months ago.

But out of all the mortgage tips I read on these two sites the one I liked the best was how the federalreserve.gov said to check out mortgage rates. They say, “Check your local newspaper for information about rates and points currently being offered.”

For one thing, newspaper advertising is on its way out. For that matter, newspapers in general are on their way out. Here in Denver, we just had one of our big ones close its doors. And newspaper advertising is expensive which means the phone has to ring to pay for it.

A mortgage lender has to get you to call which means they have to throw out a rate that makes you run to the phone. Rob used to work for a mortgage company years ago and when they advertised in the paper, they always threw out a low ball rate that the sales staff could not deliver.

Rob asked the manager why not use the real rate and he told Rob he would not spend thousands of dollars for the phone not to ring. It’s the bait and switch. Throw out a low rate and use the salesperson to turn it around once they get you on the phone.

Most mortgage loan tips are useless.

They are either downright wrong or get you to focus on the wrong thing. You find the right person first then you talk rates and mortgage closing costs. If you want to know the real way to shop for a mortgage without the lame tips, get a copy of our Mortgage Advantage. We show you the insider way to shop that no one else will.