Mortgage Rates In Papers & Bankrate.com

Remember when mom told you never believe everything that you read? Well no truer words could be spoken when it comes to mortgage rates advertised in newspapers like the Houston Chronicle or on websites like Bankrate.com – there is a lot of truth stretching going on in publications like these and others.

“It’s all in the details”, is another bit of sage advice that mom gave us growing up and that’s exactly what you have to look for when reading mortgage rate advertisements in newspapers and websites – the details.

The last piece of advice that mom gave us which applies when reading mortgage rate offers in newspapers and on-line websites is “If it’s too good to be true it probably is.”

Keeping these wonderful pieces of advice that mom gave us let’s explore the pitfalls you should be aware of when reading these offers, why they usually won’t work for you.

The first thing to remember is that when it comes to newspapers the companies advertising their rates have to submit them days in advance to “make the deadline” imposed by the publication. On the other hand, mortgage rates move daily and even hourly throughout the day. So just due to the passing of time the rate advertised in the newspaper is very likely not the rate that will be available when you call to inquire with the company advertising the mortgage rates.

When it comes to websites those rates are in a lot all instances not “real-time”. As we discussed above mortgage rates change on a daily if not hourly basis. From experience we have found that when rates have risen advertisers are slow to post the new higher rate. Why? They want you to call them and then once you are on the phone they’ll let you know that rate is “no longer available.”

Many times the rates advertised are “with points”. Well depending on how long you will be in the home it may not make sense to pay all those points for this “fantastic” advertised mortgage rate. I can assure you the lowest mortgage rate is not always the best rate, it depends on how much it costs to get it and how long you will be in the home.

Many times these mortgage rates are advertised with so many unrealistic conditions for the “average” borrower. To get that rate the borrower must have a 780 FICO score. Well that means about 90% of people won’t “qualify” for the mortgage rate. They usually also require a 20% Down-Payment which most don’t have enough to put down and qualify for the mortgage rate. Lastly it usually requires a loan size that is far above what most borrowers can qualify for when obtaining a mortgage.

The best thing for you to do when shopping for a mortgage rate is the same thing you do when looking for a good doctor – you get referrals from others that can reccomend a good mortgage broker or mortgage banker. My advice don’t fall for the advertised rate “that’s too good to be true”. Do you really want to work with someone that advertises in this manner?

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