If you’ve ever looked online for a home loan or refinance, then I’m sure you’ve seen ads like “Refinance Now at 3.75% or a brightly colored ad in the sidebar on a news website, proclaiming it can get you a 30 year fixed rate mortgage of 3.75%.


Sounds great so you check it because your bank or local mortgage broker just quoted you 4.9%.

You call the 1-800 number and someone in another State answers and starts their scripted sale pitch begins: "Thanks for calling Too Good To Be True Home Loans, my name is Jim. Looks like you saw our great interest rate offer..."

Jim starts attempting to ingratiate himself to you. Eventually, after trying to get substantive information out of Jim for 20 mins you realize that the 3.75% rate is not going to happen, even if you had the twice the income and an 850 FICO score. The only way you might get it is by spending tens of thousands to buy down the rate by paying points (not a good idea). Is that 3.75% loan available? Yes, but at a very high upfront cost.

It's highly likely that, in the end you will be quoted something close to what your local bank or mortgage broker quoted you. Also, who knows what fees they will charge you to refinance your initiate a new mortgage. 

More importantly, who are they? Basically, just a "company" you found on the internet with a bait and switch, highly misleading ad to sucker you in to call them. Go local and decided if you want to go with a traditional bank or a mortgage broker.

Regardless, whenever considering whether to refinance your home loan or taken out a new mortgage when buying a home, you need to crunch all the numbers and decide whether it's worth the effort and cost. A lot of people boast about their interest rate like a badge of honor, but how much did it cost them to get that low rate? How much are the closing costs, will you be paying points to buy down the rate, how many months or years will it take you to see the benefit of the lower monthly payments? And, don't forget, unless you go for a reduced payment period (10 or 15 years) you will be back to a 30 year mortgage again. 

A final word, call us and we will happily send you the name and contact info for lenders we’ve personally worked with excellent results for our clients.

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