Another Florida home buyer went to Google and found our web site; after obtaining a Good Faith Estimate from one of those “no closing costs” banks.  They had already figured out that the interest rate is higher, which would more than reimburse the bank especially since the home buyers have no plans on moving in the next 5-10 years.

The victim associated with gimmick advertising in the mortgage arena is unfortunately the home buyer.  Banks use the “no fee” mortgage loan to lure home buyers to call or contact them and the rest is simple.  A good faith estimate, mortgage loan application, some processing time and you close.  But did you get the best mortgage interest rate and program?  In this case it didn’t.  No one considered any other option.

It turns out that the home buyers were qualified to obtain a lower interest rate for their 30 year fixed rate mortgage.  And since the builder was contributing over $3,000 towards the buyers closing costs; it made no sense to take a higher interest rate and avoid the remaining closing costs of approximately $1,000.  The bank was raising their interest rate over the 30 year period and, in turn, would pay for the $1,000 in remaining closing costs.  It will cost you if you don’t seek professional mortgage advice and focus only on advertising gimmicks.

This is another example of how important it is to shop and find an experienced mortgage professional.  We actually take the time necessary to make sure home buyers are obtaining mortgage products that are suitable for their financial well being.  Looking for a Florida mortgage professional?  Call or email anytime.

Stephen Thaggard

Trackback URI |