You’ve heard the old saying about a wolf in sheep’s clothing? That’s how we feel about predatory lending and the companies that don’t ethically take care of home buyer’s mortgage applications.
We might sound like a broken record but we want to advise borrowers to be very wary of the big national lender predator, the one that sounds like “pocket”. We just had a borrower for whom we locked in a loan; the next day, that lender who’s name rhymes with “Pocket” contacted him and tried to convince the borrower they had a better deal.
They offered the borrower an interest rate that was a full percentage point lower than our rate – however, let’s look at the numbers on the overall deal. Although they offered a lower interest rate, they were going to charge the borrower almost $10,000 in discount fees to get that rate!
That meant their mortgage loan amount was $13,000 more than our loan and their monthly payment was $40 dollars higher.
We advised the borrower that it was costing him $10,000 to get that deal, plus an extra $40 more dollars each month over the lifetime of the loan, which would end up costing many thousands.
After we discussed it, the borrower realized the “Pocket” mortgage company’s offer was a total rip off and was not in his best interest. Had he just been mesmerized by the lower interest rate they promoted, he might have made a huge mistake, if he had not let us compare offers.
In today’s environment of rising mortgage interest rates, it’s important to shop that mortgage around and include a local lender. Indigo Mortgage has served New Mexico home buyers since 2003. We’re here to make sure you get the best deal for you.