When it comes to your mortgage loan, low rates are great, but they can sometimes be too good to be true. Here’s what to look for when you receive low rate flyers and offers in the mail.

At Indigo Mortgage New Mexico, we commonly have borrowers come in stating that they are seeing rates below 3%, for example, 2.75%-2.85%. These borrowers hope to have these rates matched; however, they are unaware of what this entails. Our question is, are you willing to pay for that rate? These lenders advertise a low rate, but the borrowers, unfortunately, don’t read the fine print to see all the added fees.

Typically, rates below 3% come with a buy down that can run as high as a few thousand dollars. The fine print always states the borrower will pay discount points to buy down the rate. Because the borrower typically does not read the fine print, this can come as a surprise. These lenders are advertising these low rates with the hopes of tricking the borrower, due to the fact that they are unaware that they need to pay to get the low rates.

At Indigo Mortgage, we never advertise or focus on rates with a buy down, unless it is specifically requested by the borrower. It’s our goal to always steer the borrower in the right direction when it comes to choosing the best option for their situation. Stay local and shop around. For any questions, the Indigo Mortgage New Mexico team is here to help!