Whenever you hear a mortgage product advertised on the radio or on the television that sounds like a great deal, there just might be a catch to it.
Just listening to the radio recently you hear advertisements from mortgage companies and banks all over Red Deer, and my company, Dominion Lending Centres Regional Mortgage Group is no different. Radio is a great way to advertise. It’s what their advertising that you sometimes have to watch for.
You will hear about profits being given back to you so you can add those funds back to your mortgage. With this deal, according to the website, if you were to sign up for a 5 year term at $200,000 at their rate of 4.39% you would get $359.98 back. What they don’t tell you is there is mortgages out there at 3.99%. That 0.40% savings is equal to $45.76 per month or $549.17 per year. That works out to a difference of $189.19 a year or $945.95 MORE over the 5 years more that you would be paying.
Some of the advertisements you will hear is about deals to win a mortgage payment for a month, all you have to do is give your name and email address. And just like that you are on a mail list to start getting emails sent to your email address constantly.
You could also hear about variable deals that are WAY below prime. These are sometimes tied to a teaser rate. For example, your first year or two of the mortgage might sit at 1.50% below prime but after that you are right up to prime for the remaining 3 years of the mortgage. If you see a variable rate advertised at 1.50% when most other companies are offering 2.25%, something is not right.
Make sure you know your mortgage that you are getting. As you know a mortgage is not a little thing. Chances are it could be the biggest investment you are going to make in your lifetime. Make sure you know what you are getting. Get a mortgage through a mortgage professional.
Don’t just get a mortgage, KNOW your mortgage.
For more mortgage information or to apply online visit my webpage http://www.scottbourke.ca/how-to-apply-mortgage
For up to date mortgage information follow me on Twitter at www.twitter.com/reddeermortgage
Join my Facebook fan page at http://on.fb.me/gk5YeS
For questions send me an email at email@example.com
Thanks For Reading
Scott Bourke, AMP
Dominion Lending Centres Regional Mortgage Group