Mortgage advertisements are designed to attract your attention, but the headline doesn’t always tell the complete story. That’s why it’s important to understand what’s included—and what’s not—before making a decision.
Why Do Some Rates Look So Low?
An advertised interest rate may depend on factors such as:
- Excellent credit.
- A specific loan program.
- A certain down payment amount.
- Discount points paid at closing.
- Occupancy and property type.
- Other qualification requirements.
The rate you qualify for may be different based on your individual financial situation.
What About “No Closing Costs”?
Some advertisements promote “No Closing Costs.” In many cases, the closing costs haven’t disappeared—they may instead be covered by a lender credit in exchange for a higher interest rate or financed into the loan when allowed.
It’s important to understand how the costs are being covered and what the long-term impact may be before making a decision.
Should I Focus Only on the Interest Rate?
Not necessarily.
When comparing mortgage offers, consider:
- Interest rate.
- Annual Percentage Rate (APR).
- Closing costs.
- Monthly payment.
- Loan program.
- Service and communication.
The lowest advertised interest rate isn’t always the lowest overall cost. Looking at the complete picture can help you make a more informed decision.
Ask Questions Before You Commit
Before choosing a lender, don’t hesitate to ask questions such as:
- Are discount points included?
- What fees will I pay at closing?
- Is the quoted rate locked?
- How long is the rate lock?
- Are there lender credits?
- What assumptions were used to prepare this quote?
A trustworthy lender should be willing to explain every fee, every cost, and every option so you understand exactly what you’re agreeing to before moving forward.
Ready to Apply?
If you’ve received multiple mortgage quotes or have questions about an advertised rate, I’d be happy to review your options and explain the differences in plain English.
When you’re ready, you can complete a secure online application by clicking the button below. I’ll help you compare offers, understand the costs involved, and choose the mortgage solution that best fits your financial goals.
Note:
Mortgage rates, fees, APRs, and loan terms vary based on market conditions, loan program, credit profile, property type, and other qualifying factors. Always review your official Loan Estimate before making a final financing decision.