There are no such things as Bigfoot, the Tooth Fairy or 2% 30-year Fixed Rates

So you’re reading the daily news online and notice an advertisement promoting crazy-low interest rates. Such low rates! In fact, they’re blowing my rates out of the water.

How does this happen?

I’ll get to that part. But what you really need to know is there is no such thing as a 2% 30-year fixed mortgage. Be very careful when shopping mortgage rates online and take everything you read with a grain of salt.

What does that 2% interest rate really mean? Is this false advertising?

The 2% interest rate might actually exist… But here’s the “catch” you won’t find with some of these internet lenders until it’s often too late.

The loan product being promoted is for an extremely short term … usually less than 12 months (and sometimes as short as 30 days!).

The 2% rate will jump dramatically and suddenly once that initial “teaser” period ends.

If it sounds too good to be true – especially in the world of mortgage finance – it usually is too good to be true.

Is this false advertising? Personally, I find this type of “bait and switch” to be misleading and unethical – and that’s why you’ll always hear me quoting you a fair rate without the fine print.

Would you like to learn more about what goes into your mortgage rate and closing costs? That’s why I am here,  Please don’t hesitate to reply to this email or call me anytime.

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Nick Magiera

Author Nick Magiera

Mortgage Banker by trade, Nick Magiera epitomizes integrity, energy, hard work, and creative service in every detail of the real estate transaction. Nick is a family man with a devotion to God, his beautiful wife & his adorable Bernese Mountain Dog.

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