This is a post I've wanted to write for a while, because I think the public should be well informed about the "weekend mortgage rate" lie in your local newspaper.
These lies are quite common and serve to make us all look bad. It also makes it very difficult for honest mortgage brokers to do their jobs.
These things drive me nuts.
Some Arizona mortgage companies list their mortgage rates on websites or even in my local paper over the weekend.
Since they are in the Real Estate section and their rates are listed in a table with other mortgage company's rates, a lot of the companies just list a ridiculously low rate.
You will call them on Monday and of course, you will find that the weekend rates aren't even valid, and never really were since the market was closed, but they will gladly tell you what today's rate is of course.
But now they have you on the phone to pitch you.
The irony is, the one or two companies that do try to advertise honest "weekend" rates don't get the chance to speak to you. Their honesty has cost them the business and probably cost the Arizona mortgage consumer the better deal. (No good deed goes unpunished?)
Because now you are dealing with the dishonest lender.
When the paper calls me on Friday afternoon and asks me what mortgage rate I would like to advertise for the Sunday edition, what do I say?
I could tell them Friday's rate, but I would be nuts. If Friday's rate is 5.00%, then my competition is going to say anything from 4.25% to 4.75% on Sunday. But what else can they do? You either participate in the lie, or you just don't advertise in the paper. Or, throw your money in the toilet and offer your best guess-- Friday's rate.
Nobody can supply mortgage rates on a Sunday. I mean, I guess you could if you owned a bank and you felt like gambling while the financial markets are closed... But not really.
Walmart does the something similar. When you walk down the TV aisle, they'll have some no-name, 42 inch, plasma TV for $199. So then you think, "Well if Walmart can offer the no-name for that price, I bet I can get a killer deal on a Sony!"
But their Sony TV's aren't discounted nearly as much as the other TV. The other TV draws you in and then, hopefully you get greedy and upgrade.
So the mortgage companies engage in this type of baiting all of the time and, most of the time it seems, the honest broker gets the shaft. Lie my butt off and get leads? Or be truthful and honest at all times and earn less money then my sleazier brethren?
It's really an unfair position to put me in-- those of you that lie about rates. Can't we treat our potential clients, and each other, with some tiny degree of respect?
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