Don’t be tricked by a radio advertisement
Be careful not to be tricked by radio advertisements. One of my friends uses the radio, but he doesn’t promise the moon, low rates, or tricks. He is a likable kind of guy you would like to know and do business with, his advertisements convey that message.
I was prompted to write this posting by a radio advertisement I heard. It made a big deal about no closing costs. Understand, every lender has that option. To have no closing costs means you pay a higher rate, so the bank can give the lender a rebate. Out of the rebate, the lender pays your closing costs.
What concerns me also, is if you choose the lender like this, for this reason, you are doing it for the wrong reason.
Another radio and media come-on is the low interest rate gimmick. Understand, loans are sold to investors. It is very competitive and no one should be much lower than the group. Watch our Thursday postings of Freddie Mac rates. They should be a guide to reality. When someone offers to beat the market in a big way, beat a path elsewhere, you are probably about to be tricked into something you may regret.
Larry Cragun
