Rates are up today. Today’s comparison mortgage rates with no lender fees are 4.125% on a 30 year, 3.375% on a 15 year and 3.0% on a 5/1 ARM. (click here for details)

It is Cyber Monday today! It’s a great day to go online to get some deals on this year’s Christmas list.

In the spirit of online shopping, let’s go over a few things you should watch out for when you are shopping for a mortgage online.

Check out today’s video:


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

The internet is a great place to start your search for a mortgage but it can also be a very confusing and a little misleading. So let me give you some advice.

First of all: Stay away from advertisements. If you Google “mortgage rates” you will see that the top few websites are highlighted. These are advertisements and these companies pay to be there, so do all the companies on the right hand side. The sole purpose of most of these companies is to capture your personal information and sell that information to lenders over and over to maximize their income. They could care less about you getting a good deal. The end result will be you getting bombarded with calls from lenders you don’t want to speak with.

This goes for false advertising as well. If a rate looks too good to be true, it is. I can tell you right now you cannot get a 2.9% interest rate on a 30 year fixed loan. Advertisers are not regulated like an actual mortgage company is. Look for the disclosures on the website to see how they are coming up with those rates.

Comparison tables can be a good resource to compare lenders online. The most popular one is Bankrate.com. If you enter your loan scenario on Bankrate it will bring you to a list of lenders and what rate and lender fee they are offering that day. Bankrate does have some quality control so almost all lenders on the site are pretty accurate.

If you find a few lenders you like, I would go to their website and call them to get an accurate quote on your specific loan scenario. Comparison tables are nice because they will help you shop many lenders at once. However you still need to do your due diligence to make sure they are accurate.

The last thing would be to make sure you end up speaking with a live person after you do a little research online. Mortgages are way too complex to rely on any type of automated system out there. There is no system out there that can replace an experienced loan officer, especially on a purchase transaction. Your pre-approval should be coming from a loan officer that has taken a full application on you and not something you print online. That would be a big no-no!

So there you have it. The internet is a great place to narrow down your search for the person that will be doing your loan. Just don’t get caught in the traps out there. The only person winning on the saying, “when banks compete, you win” is the person selling the lead to the banks or in this case, lenders. Do your own research and then you will win.

If you thought this was good information or worth discussing, help me bring transparency to mortgage lending by sharing today’s episode on Facebook or Twitter.

Let’s change the way people shop for a mortgage…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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