Why Can’t I Get that Advertised Mortgage Rate?

By
Real Estate Broker/Owner with The L3 Real Estate, A Trusted Name In Orange County Real Estate #00573423

Advertised

First-time homebuyers might not be aware of something veteran homeowners assume automatically: those advertised mortgage interest rates are not necessarily the rate that will be offered. To Costa Mesa consumers who usually assume that they are protected from false promises in ads, that can be pretty annoying. But as with some furniture store “interest-free” offers, those interest charges may suddenly appear if you don’t pay the balance in full by a certain date. It pays to read the fine print.

The reasons why the actual Costa Mesa mortgage interest rate you are offered may be higher than what you saw advertised on TV or on the web lie in definitions and qualifications. They aren’t misleading to home buyers who know what to look for.

As you would expect, home loan ads promote the lowest rates that can be honestly stated. But that published rate might have qualifications that don’t apply to the loan you will be promised if you apply. That will be the promised rate, which may be higher if, for instance, the published rate was only available for homes in a different zip code. A home loan ad’s small print may specify other qualifications, such as an applicant’s credit score, debt-to-income ratio—or it might only apply to loans of a certain size.

Equally important is that the advertised interest rate itself does not tell the whole story. The cost of a loan may include points or partial points—and since a “point” equals 1% of the amount of the loan, that can be a sizeable sum. When points are added onto the principal, the larger loan amount requires higher payments. Even for no-point loans, other fees—like processing, underwriting, appraisal, title and escrow fees—may be high or low, depending on the offeror.

What this means is what Costa Mesa veteran homeowners assume: that a higher interest rate might still constitute a better bargain when all the bits and pieces are considered. All the “fine print” details need to be part of the calculation. It’s one reason we always recommend that more than one mortgage originator be considered before making a final decision. We’ll be happy to assist with these and all the other parts of your Costa Mesa real estate endeavors!

 

We are built on a philosophy of Heritage & Hustle L3 is a full service real estate agency with a regional office located in the heart of #CostaMesa, offering a wide-array of custom services to meet their clients’ needs with roots in the community since 1976. It’s L3 mission to provide trusted, convenient, responsive service to ensure clients enjoy their real estate experience. L3 was originally formed to offer personal, concierge-level service as an alternative to the large, nationally based real estate companies. From its small beginnings of only two employees, L3 has grown to a full staff of 20 serving over 300 clients a year. L3 is not limited to serving just its clients; it is also committed to serving the community. Not only has L3 donated hundreds of hours to many area charities, they have also received the prestige of being named one of the #toprealestatecompaniesinCostaMesa If you’re interested in #buyingorsellinginOrangeCounty, turn to the experts. Turn to L3 and let them help you make your real estate buying or selling dreams come true. For more information or to get started on finding or selling your home contact L3 today at 714-444-4663 or email us at info@thel3.com

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Topic:
Lending / Financial
Location:
California Orange County Costa Mesa
Groups:
Active Rain Newbies
Realtors®
Orange County Real Estate
ORANGE COUNTY, CA REAL ESTATE
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Rainmaker
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Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

That's good information for home buyers when it comes to mortgage rates, especially advertised mortgage rates.

Nov 28, 2018 04:59 PM #1
Rainmaker
244,698
Larry & Laurie Weichman
The L3 Real Estate, A Trusted Name In Orange County Real Estate - Costa Mesa, CA
A Tradition of Success

Couldn't agree more.  It's so important for home buyers, especially first time home buyers.

Dec 05, 2018 08:58 AM #2
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Rainmaker
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Larry & Laurie Weichman

A Tradition of Success
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