Eden Gelt – Last week as I’m listening to the radio (yes, I’m old-fashioned and don’t stream), I heard an ad for a low mortgage rate that captured my attention. “Looking to buy or refinance your home? Rates are still historically low and you can lock in your loan at 5.25%, call (Not to Be Named) Mortgage today!”
By this time, I’ve hushed the children and blasted the radio — until I heard the disclaimer. It went something like, “blah blah….rates are valid as of X/X/2022 – yes they put in an early 2022 date…blah blah.” And there it was — the mortgage company was drumming up business by offering a lowball rate from the past that they know they can’t offer today.
Although this makes the phone ring, it is a form of bait and switch – or as we like to call it “rate and switch.”
Another technique I’ve seen more lately is companies advertising below market rates and hiding upfront fees (points) in the disclaimer.
Points can be anywhere from .5 -3% of the purchase price for a small reduction of interest rate. Often it takes 5-6 years to pay back a point, where someone would pay less in interest over the same time period.
At Key Mortgage, we don’t lead with point-based pricing, we provide the client the counsel and options so they can choose what works best for them.
At Key Mortgage, it’s our job to find the “rate and switch” and get your client into the right loan for them. We offer $100 to your client for letting us give their loan a Second Look, whether they use us or not. Call me to be connected to a Key LO today for more information.