Alex Carlucci The Mortgage Expert,
Publish On: December 10, 2018
This BLOG On Tips In Getting Lowest Mortgage Rates Florida Was UPDATED On December 10th, 2018
Borrowers who are thinking of getting a mortgage with lowest mortgage rates Florida should optimize their credit scores before applying. Majority of mortgage companies that advertise on television, radio, or newspaper often lure potential borrowers with claiming they have the best mortgage rates.
- Many mortgage companies spend thousands of dollars on mailers and TV advertisements offering potential mortgage loan clients teaser low mortgage rates
- Most mortgage rates mortgage companies advertise have many conditions
- If viewers look at the fine print, there are disclosures such as mortgage rates starting as low as
- There are disclosures such as mortgage rates starting at 2.75% with 4 mortgage points and 15-year terms
- Bait and switch ads are very common
- The key for these mortgage companies is for viewers to call in
In this article, we will cover and discuss Tips And Advice In Getting Lowest Mortgage Rates.
How Can You Find “The Best” Mortgage Rates?
The main reason mortgage companies advertise such low mortgage rates is primarily to make their phones to ring.
- It is a bait and switch marketing strategy
- This bait and switch marketing technique is also known as short pricing
Mortgage Rates in Florida: Beware of Short Pricing
Short pricing is when a mortgage company advertises ridiculously, almost impossible mortgage rates:
- These lenders will often advertise low mortgage rates with having the intention of implementing a bait and switch method once the client calls in
- With short pricing, a mortgage company offers borrowers super-low mortgage rates
- but the mortgage rate quoted to borrowers is only locked for a super brief period which does not make sense
Locking your Mortgage Rates
Most home buyers enter into a real estate purchase contract and normally set a closing date for 30 to 45 days from the date of the signed contract.
- If the borrower were to lock a mortgage rate for a 5 to 7 day period, the borrower is just wasting his or her time
- This is because the mortgage loan will not close in that short period of time frame
- When borrowers see mortgage rates advertisements on television, radio, newspapers, internet, or get mailers, the lock period they are offering with the ridiculous mortgage rates is oftentimes very unrealistic
It is not realistic due to the very short time frame in getting a purchase real estate contract executed and close the mortgage loan.
What Else Should Mortgage Shoppers Look For?
Other common ways mortgage companies advertise ridiculously low mortgage rates is by offering a mortgage rate that is super low but in order to get that low rate, borrowers need to pay points.
- Paying points is not stated on the advertising but it reflects on the APR
- The APR, or annual percentage rate, is the real cost of financing home loan
- The APR consists of the various fees associated with the mortgage loan
- It is usually listed on a fine print section of the mortgage loan ad as a disclaimer
Mortgage advertisers will state the super low mortgage rate in super large bold letters:
- but will post the higher APR mortgage rate in fine print that is hard to read
The higher APR rate will most likely have several points being charged on the mortgage loan amount in order to get that ridiculously low advertised mortgage rate:
- That would not benefit most mortgage loan borrowers
Mortgage Rates Versus Credit Scores
I would strongly recommend doing some intensive due diligence on mortgage companies that advertise excessively and that bombard you with constant junk solicitation mails that offers you mortgage rates Florida that seem too good to be true.
- For example, there are mailers and advertisements where mortgage companies advertise mortgage rates starting at 2.75%
- The key is for viewers to call in and talk to a loan officer
- Loan officers will do a bait and switch and tell borrowers that 2.75% is possible
- However, they need to pay 5 discount points, and it is only for 15-year terms
To top it off, borrowers with 740 FICO and 30% equity can only qualify.
Qualifying For Best Lowest Mortgage Rates
Homebuyers needing to qualify or homeowners needing to refinance their home loans with the best mortgage rates, contact us at 800-900-8569 or text us for a faster response. Or email us at gcho@gustancho.com. We are available 7 days a week, weekends, and holidays to take your mortgage inquiry.
