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Veteran Rates too Good to be True?

Thursday Jul 14, 2016
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One of our veteran customers called our office mentioning a letter they have received from a mortgage company offering rates like 2.5% or 2.75% on a 30-year mortgage and wanted to know if we could match these rates. After further investigation, we found that these rates aren’t exactly what they seem.

The fine print stated that yes it is a 30-year mortgage, but it is not a 30-year fixed mortgage rate. In other words, the mortgage rate is adjustable and is only fixed for somewhere between 3 and 5 years. After this threshold is reached, the rate adjusts every year there-after.

Another scam was brought to our attention by one of our veterans where the advertised fixed rate was below 3% but the fine print stated that an additional 2 points was added by the lender in discount and origination fees. That’s 2% of your mortgage, so, on a 200K mortgage this would be a cost of 4 thousand dollars to buy down the rate, not including other closing costs.

Both of these tactics are extremely misleading to veterans. As a guideline, 30-year VA rates are in the very low 3% range and the veteran should get these rates without any origination, discount, or lender fees.

Stay local with Indigo Mortgage and let us review those too-good- to-be- true offers and we will advise veterans on what’s in their best interest. Indigo Mortgage is the #1 VA mortgage broker in New Mexico because veterans refer veterans to us. We will always do right by the veteran and have helped many veterans save thousands in closing costs and get a low rate with no strings attached.

Indigo Mortgage is a locally owned and operated company, serving homebuyers in Albuquerque, Rio Rancho, Santa Fe and all across New Mexico. For questions about selecting a mortgage lender, contact Indigo Mortgage in Albuquerque at (505) 836-5700. Indigo Mortgage offers five mortgage divisions including Residential, VA Loans, Reverse Mortgages, Construction and Commercial. They are licensed by the Nationwide Mortgage Licensing System (NMLS #188348), and can provide loans anywhere in New Mexico.

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