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Read the truth behind deceptive mortgage ads

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Getting a low interest rate on your mortgage can make a big difference in your household finances, and the internet can be a good way to compare the rates offered by various lenders. The FTC’s case against shows the value of shopping around and checking multiple sources of information.

One of the most important considerations is whether a loan is offered at a single fixed rate for the life of the loan, or whether it is an adjustable loan with a rate that changes over time. The FTC recently sued, alleging that the company deceptively advertised variable interest rates as fixed rates on its site, The site prominently advertised attractive mortgage rates — for example, a 2.5 percent “fixed-rate” — as well as monthly payment quotes reflecting those low rates.

The site’s disclosure page revealed that the interest rates glaringly advertised as fixed-rate mortgages were, in fact, for adjustable rate loans. The prominently advertised low fixed rates were not likely to be available to the average consumer. But the FTC says this information was obscured and in fine print. It’s against the law to bury disclosures in fine print that contradict a more prominent advertising pitch.

If you’re shopping for a mortgage, check out multiple lenders. Compare rates and fees and read lender reviews to find the best loan for you. Figure out how much of a down payment you can safely afford, and find out all the costs involved in the loan. Knowing just the amount of the monthly payment or the interest rate isn’t enough. Get information about the same loan amount, loan term, and type of loan from each potential lender so that you can compare “apples to apples.” Use the Mortgage Shopping worksheet and online mortgage calculators to help you estimate monthly mortgage payments for various loan amounts, interest rates, fees, taxes, and insurance costs.

Learn what to look for when shopping for a mortgage and how to spot deceptive mortgage ads.

Blog Topics: 
Homes & Mortgages


I damn near got the shaft myself. My wife & me decided that before any decisions were to be made we'd check the lenders from top to bottom. Talk to their customers, staff in different departments at different times of the day. Shocked as hell when we would get different answers from same departments on same questions on separate days & times. Buyer be smart!! Larry pike

I have to tell you the own we purchased for our mortgage was one renewed every 36 months what was called extension but also one we could get extended even if payments were late extending only made it easier for bank to change interest higher also not explaining each extension was accumulating interest late where at the last experience I had my husband had gotten 8 extentions and be loan terms without my consent or knowledge belmond Ia first state only way they do mortgages .

ttrying to find out if bank of americeasold my mortgage illeagelly

Read Making Payments to Your Mortgage Servicer for more information.

The ownership and servicing rights of your loan may be handled by one company or two. If ownership of your loan is transferred, the new owner must give you a notice that includes:

  • the name, address and telephone number of the new owner of the loan
  • the date the new owner takes possession of the loan
  • the person who is authorized to receive legal notices and can resolve issues about loan payments
  • where the transfer of ownership is recorded.

The new owner must give you this notice within 30 days of taking possession of the loan. It is in addition to any notices you may get about the transfer of the servicing rights for your loan.

Has anyone used Discover Loans for refinancing? They promise to lower my twelve year mortgage to a ten year one. Leery of their promises last time I refinanced ending owing more money had to do a loan modification to be back to square one.

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