by: Gaye Jones ~ AnnieMac Home Mortgage

I’m as guilty as most in not really reading the fine print, but when you are making financial decisions regarding the biggest investment most of us make in our lifetime, it’s imperative that you do read the fine print!

My daughter received an offer in the mail from her current mortgage company that stated they could lower her rate to 3.75%! Sounds good, unless you knew that her current rate was 3.25% which is why this caught her eye.

Because I’m in the business, she decided to read the fine print so she could share with me this offer.

What she found is astounding, and terrifying at the same time. This “GREAT” rate was only good for SIX MONTHS, it then raised to a 5% fixed rate!!!

So, I’ve started paying closer attention to my mailings.

I received one last week that said they could lower my rate and although the Interest Rate they quoted was low the FINE PRINT disclosed that it would cost me 3 discount points (which is 3% of the loan amount). I actually did refinance my home into a lower rate, but I didn’t pay those high fees to do it!

One of my past customers emailed me an offer he received and although the rate they quoted sounded remarkable, the APR was so high that I knew that rate also came with 3 discount points. He would have spent almost $20,000 just to refinance.

The best advice I can give is STAY LOCAL and use someone you can trust when you’re making financial decisions.

Whether it’s investing your money, buying a home, financing a home or simply shopping for expensive items, when you stay local the person that is selling you their product is more accountable.

You may run into them around town. The offers you are getting in the mail or via the internet are rarely in your best interest. In my world, these offers may not be illegal, but they sure border on unethical.