 |
The Truth About Current Mortgage Rates
If you’re hunting down current mortgage rates, maybe you’re looking to buy a home or maybe you’re looking to refinance. Either way, the mortgage industry and loan application process can be an overwhelming one for anyone, even those who already have home loans.
It is easy to be deceived by what you think are current mortgage rates, or to think that what you see advertised online and at your local bank is what you’re going to get. In reality, those rates may not apply to you, and the ones you see advertised may even be what you call a teaser or introductory rate.
What is a Teaser Rate?
In the retail industry, it used to be standard practice to advertise a sale or price on a certain item, but when the customer arrived at the store he or she was told that the real price was actually something higher, or that they were out of stock on that particular item and were offered something different and more expensive.
This was called “bait and switch” and the government made it illegal. With current mortgage rates, however, there is something very similar to this practice going on, and they’re called teaser or introductory rates. You may be familiar with an adjustable rate mortgage, where the interest rate will reset after a certain amount of time, typically every year.
Some lenders would advertise a rate that was very under-inflated or purposely very low as their current mortgage rates. Why would they do this? So that borrowers would sign up with that introductory rate, not realizing that it was only good for a year or so and that after that time it would go up, and sometimes go up considerably.
Many borrowers and homeowners found that their monthly mortgage payment jumped by almost half over again. For those who are very wealthy or have that extra room in their budget, that may be fine, but most people today struggle just to pay their current bills.
Having a mortgage payment that is half over again can squeeze the family’s budget far too tight, and some have even been forced into foreclosure because they can’t make their new payment. And all of this is because they thought those current mortgage rates advertised at the bank were what they would be paying forever!
Know the Facts
It’s very important for any potential borrower to really understand all the facts when it comes to current mortgage rates . You don’t want to be “suckered” into signing a 30-year mortgage that you think will be a particular amount every month, only to find out that your payment will increase by ten, twenty, or even fifty percent sometime down the road.
Make sure that the current mortgage rates that you’re being offered or that you see advertised are for a fixed rate mortgage, or that you understand how your adjustable rate mortgage will eventually stray from your current mortgage rates. This is the only way to avoid any unpleasant financial surprises down the road.
© SOURCE: mortgageratereduction.net
Sponsored
|
 |
 |
Rancho Santa Fe Mortgage Corp.
Rancho Santa Fe Mortgage Corporation's team of mortgage professionals is dedicated to building a long-term relationship. In an industry that has become transaction based this should be a refreshing change.
|
| |
|
 |
Sierra Western Home Loans
We have designed home loans that will allow you to get the solar panels you have been considering for your home. Renewable, green energy like solar electricity is the future, and state and federal rebates can greatly reduce the cost. Get solar panels installed by one of the best contractors in California!
|
| |
|
 |
Adirondack Home Mortgage, Inc.
You'll find we offer a wide range of mortgages for nearly every budget, interest rates that compete with the best anywhere, and some flexible financing options that can make buying a new home a very attractive move.
|
| |
|
 |
Pacific Inland Financial, Inc.
Jim Chubb is a full service mortgage broker licensed in Soquel, CA. We specialize in first and second mortgages, debt consolidation, refinance, and bankruptcies. Shop for a loan with our interactive calculators and compare our competitive rates.
|
| |
|
 |
Main Stream Financial
Main Stream Financial is dedicated to providing their clients with reliable home mortgage lender and Santa Maria real estate services along with helpful real estate mortgage quoter tools so that they can reach their goals of Santa Maria homeownership.
|
| |
|
|
 |
|
 |
|
S u b s c r i b e
To have new posts sent to your inbox, enter your email address:
|
|
 |
|
 |
P r e v i o u s P o s t s
How to Use a Mortgage Payment Calculator?
What Is A Reverse Mortgage Calculator?
Mortgage Loans And Rates Information.
Finding Bad Credit Mortgage Loans.
Best Fixed Rate Mortgage Helps Long Term Finances.
Why Mortgage Interest Rates Are Rising Despite Government Actions!
Brokers banned for poor mortgage advice.
L i n k s
Buy intenational phone calling cards. prepaid international calling cards
Delivery flowers, floral & bouquets. Orange County flowers
Delivery flowers, floral & bouquets. Delivery Service flowers
|
© 2008–2009 Lexa land . com
