Rates are down today. Today’s comparison mortgage rates with no lender fees are 4.125% on a 30 year, 3.375 % on a 15 year and 2.875% on a 5/1 ARM. (click here for details).

Happy Halloween everyone!

Today I’ll uncover three nasty tricks that lenders may try to use on you. If you’re able to avoid these cheap tactics, you should get a treat of a mortgage.

Today’s episode is a treat:


(Watch it on your mobile phone or email reader here)

For the full list of the best cities for trick or treating, click here.

Are you afraid you’re going to get scared silly while shopping for a mortgage? If you’re aware of these three tricks it will be much easier to get a sweet deal:

1. When a lender pulls your credit, your credit score does NOT decrease This is one of the most common mortgage myths. A lender may tell you this to prevent you from shopping around for your mortgage. You can actually have your credit pulled multiple times while shopping for a mortgage, and it won’t impact your credit score. It’s probably not a good idea to shop for a mortgage, car loan, and credit card at the same time, because that could hurt your credit.

2. The “Bait and Switch” There’s plenty of variations of this trick, but the most common tactic is quoting you an unrealistic rate and costs up front on your purchase transaction. When it comes time to lock in after you have a contract in your hand, the deal is not nearly as good as it was on the pre-approval. Make sure you get everything in writing, and always have a backup plan if your lender tries the bait and switch.

3. The “locked” lock This is when your lender tells you that you are locked in but they actually float your loan in hopes that the market will improve so they can make more money. I know the new loan officer compensation rules are supposed to help prevent this issue, but it’s not 100% effective. Don’t confuse this trick with a loan scenario change that changes your lock. Make sure the differences in your loan scenario justify any rate change.

If you thought this was helpful, I would love to have you help bring transparency to mortgage lending by sharing today’s episode on Facebook or Twitter.

Let’s change the way people shop for a mortgageā€¦forever!

– Mike

PS. To ask a question, get advice, or find out if you’re getting the best deal possible on your loan, just post a comment below. Daily comparison rates, calculators, and other cool features are available in the free Rates in Motion LoanApp by going to your smart phone and clicking on this link, activation code is 9203780002

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