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MORTGAGE LENDER WARNS BUYER BEWARE!

By Kim Murphy

Mortgage and Lending with Draper and Kramer NMLS# 189006

June 20, 2007 05:14 PM

Our current mortgage company along with many other mortgage companies these days are working hard at getting our business by way of a refinance or home equity loan.

I have opted out so the amount of mail has really slowed down as well as the phone calls due to putting our number on the do not call registry.

However, the other day we received a phone call from our current mortgage company, my husband took the call and informed the man on the other end that I was a mortgage lender and that I would take care of financing. The next day they called again, this time they got me! The representative told me that he was very excited because we have been great customers he had some great programs to offer us to lower our rate, term and possibly lower our monthly payments. When I told him my current 30 year fixed loan is in the low 5's and that with today's rates I'm sure he would not be able to beat it. He informed me that a mortgage specialist would be able to give me the details when they called me back.

I guess I should have just played along and listened to what they thought they could do for me. But instead I asked that they remove our number for any other specials they may think they have as I would take care of my mortgage financing myself.

What I don't like about these types of enticing calls or advertisements is the average consumer may not really know if these options offered to them are really in their best interest.

We have all heard the no closing cost advertisements, the 1% ads, the $350,000 loan amount for only $650.00 a month etc. They are enticing, however they are misleading at times and not always the best interest of the consumer.

Let it be known that I and any other mortgage lender make a living doing home loans, it is never absolutely FREE. The 1% interest rate is AWESOME, until you find out the details of the rate adjustments, and the low monthly payments on the larger loan amount sounds FANTASTIC until you find out that you could have negative amortization.

BUYER BEWARE!

If you would like an evaluation of your current home loan with honest options, contact a Licensed Mortgage Lender.

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Michael Delp

Mortgage Pro - Telford, PA

I love playing along with some of the sales calls. When I tell them what rate I am at they are sure I am in an adjustable mortgage or some other product. When I tell them it's a 30 year fixed mortgage, the get off the phone somewhat quickly. There are too many sharks in the waters trying to sell the public on bad loans by misleading people. Buyers beware! Stick with a loan officer you can trust. thanks for putting the red flag out there.

Jun 21, 2007 12:18 AM

Dennis Serra

Meridian Business Group - Schaumburg, IL

I love telemarketers. It gives me a chance to hear someone else's spiel. Most of the time they have no clue on what they are selling, but occasionally they teach me something.

You are right, Kim. Consumers should be weary of anyone soliciting them on the phone. Are you on the DNC list? If so, have you informed the telemarketer that they may be breaking the law?

Jun 21, 2007 02:06 AM

Marc Blasi

Palm Beach Gardens, FL

Hi Kim-

Just need to keep screaming "Let the Buyer beware" at the top of our lungs.

The amount of scamming is horrible.

If I have the time, I do like playing along with the people who call me. It may not be nice, but since I'm on the Do Not Call list - I figure they deserve it.

Jun 21, 2007 03:15 AM

Kim Murphy

Draper and Kramer - Lombard, IL

Mortgage Loans in DuPage, Kane, Cook, Lake, Will C

Michael... After I hung up, I thought about playing along! But I think I was more upset thinking of non mortgage pro's falling into the "Great Deal" being offered.

Dennis... I am on the DNC list, however because they are my current mortgage company they call solicit..but I have asked them not to anymore!

Marc... I'M SCREAMING IT!!!! can you hear me?!?!? Is anyone else listening? LOL

Thank you all for stopping by!

Jun 21, 2007 05:16 AM

SHAUN WREN

LICENSE IS NOT PLACED - Lakeland, FL

I live in Lakeland Florida. Last year it was one of the hottest markets in the United States. I kept getting the same calls ( I can lower your lower your payments -Pay off your debt). After about 10 calls I said ok, lets play the game with them. I was interviewed ,then sent to another person to be verified. After that they said they would have a specialist call me back. I then asked for their supervisor. When he picked up the phone ,I explained that I might be interested in his services. He sent me the information to have his people call for lead generation, cost and ratios for pull thru. I was amazed. These people aren't mortgage professionals and the people I spoke to are not even in the U.S. . I didn't buy the leads but it is nice to know what your competitors are doing.

Jun 21, 2007 05:38 AM

Bruce Bourgault, Vice President, Mpro

Central Pacific Homeloans - Honolulu, HI

Hi Kim -- I have a VA loan on my house and I get letters weekly telling me that the VA wants me to refinance and that I can get a rate as low as 4% 30 yr fixed. It just makes me sick that our Veterans are being bamboozled by this nonsense. I wish we had a way to out these jerks.

Jun 22, 2007 11:52 AM

Rick Grand

nowhere - Eugene, OR

I hate seeing the 1% options and the same $350k loan for that $650/month...us mortgage lenders know exactly how that works...deferring interest and yes it was free. UP FRONT! but then again there was the 3% they made on the back that they probably forgot to mention...

Ugh...those companies give us a bad name.

Jun 22, 2007 03:30 PM

Kim Murphy

Draper and Kramer - Lombard, IL

Mortgage Loans in DuPage, Kane, Cook, Lake, Will C

Shaun... Amazing, you cant even talk to someone who knows the programs when they call, they just want to be a number taker for someone else. I cant and wont run my business that way! Nothing personal about it!

Bruce... I agree I wish we could get people like this to stop calling and giving information only half way. I want all the clients to have ALL the details, not just want will line my pockets the quickest!

Rick... Not only the 3% on the back, with that comes the hefty pre-pay! Most don't realize. I cant tell you how many people I have refinanced recently that were put into option arms and still have a pre pay but wont go back to the lender that gave them the loan. They don't care about the pre pay, they just want out!

Nice to see all of you!

Jun 25, 2007 01:56 PM

Jack Haydon

Charles Rutenberg Realty - Clearwater Beach, FL

Clearwater Beach Condos - Real Estate Homes for Sale

Kim,

Thanks for the post. I think the best thing you can do is to educate your realtors to help spread the word. :)

Jack

Jun 26, 2007 12:05 PM

Ray Saenz

Exit Realty Laredo - Laredo, TX

Homes for Sale in Laredo, TX - Texas, Realtor

Kim, great blog, Do you think that I am educated ? :) just kidding ! but that's a good advise that Jack wrote, :) some needs more education to understand very well the whole thing.

Jun 26, 2007 04:48 PM

Kim Murphy

Draper and Kramer - Lombard, IL

Mortgage Loans in DuPage, Kane, Cook, Lake, Will C

Jack.. Thank you for stopping by, I keep trying to educate and spread the word, hopefully I am being heard!

Ray... Thanks for your encouragement! I've missed you, you must be busy!

Jun 26, 2007 04:57 PM

Ray Saenz

Exit Realty Laredo - Laredo, TX

Homes for Sale in Laredo, TX - Texas, Realtor

Kim, so busy that I just made some blogs and I am just reviewing the messages or comments that you left me, answering to yours :) How is everyhing? good ?

Jul 15, 2007 05:43 AM

Kim Murphy

Draper and Kramer - Lombard, IL

Mortgage Loans in DuPage, Kane, Cook, Lake, Will C

Ray... Glad to hear you are keeping busy! Keep it up! Things are good! Nice to see you!

Jul 17, 2007 01:33 PM