Many of us get tempted by the lucrative mortgage advertising all over the newspapers, television and radio. However, do not get duped as these advertisements might be full of lies!
These advertisements are legal and companies make tons of money from them! This article will unveil the real scene behind these Mortgage advertising trends.
The No Cost Mortgage is a Big Lie
The phrase ‘No Cost’ in mortgage ads is quite a sham. No such thing as No Cost Loan exists!
You would have come across most prestigious banks and biggest mortgage lenders use this phrase in their ad campaigns; but regardless of its meaning, it is one of the most misleading advertisements. So much so, that the state of California, USA has banned the phrase in mortgage advertisements!
To make up for the ‘no fee or no cost’ loan, these money lenders raise the loan rate by at least 1%. Therefore, there is nothing free about these loans as the customer end up paying the same amount, or sometimes even more!
The Low Rate Quote Lie
Mortgage advertisers mostly mention lower rates than what they actually charge. This is a tactic to rope in as many interested customers as possible. They don’t want to pay obnoxious amounts on advertisements and have their phone not ringing! So never believe the low rates mention in ads.
Just think logically- every mortgage customer will have a different credit score, loan value, and income, so how can one loan rate apply to all customers?!
The Mysterious Missing rate Sham
Whenever you see a mortgage ad with a mysteriously missing loan rate, then sniff for a sham! When the advertisement focuses only on the ‘closing cost’ or the ‘flat fee’, or even on the ‘low payments’ or the ‘amount you save’, then do raise a red flag!
Read the fine print carefully and the lie will be unveiled to you. The mortgage will have an adjustable rate and you will be required to pay the interest with every payment you make.
So, be skeptical every time you come across a lucrative mortgage advertisement and look out for all possible loopholes.