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My
name is Bruce
Brown. I'm a
Certified Mortgage Planning Specialist (CMPS) and a Certified Residential
Mortgage Lender (CRML) with more than 13 years mortgage experience. You may be visiting this site because of my
advertisement
you heard on the radio.
As I work in my office and the radio
plays in the background I hear advertisements from a number
of mortgage companies and they all have
something in common. They are intentionally misleading and
as a mortgage professional I'm calling these companies out.
These advertisements infuriate me and they should infuriate
you too.
In March 2007 I had clients in my office when
one of these advertisements played. At the time, market rate
for a 30-year fixed rate mortgage was about 6% and the radio
advertisement promoted a rate of 5.375%. What the radio
advertisement didn't mention was that the advertised program
required 1.375% in discount points and the company required a 1.75%
origination fee. In other words, to get the advertised
interest rate
it required 3.125% in points and this was before any other
closing costs. How do I know this? I emailed the company as
if I was a potential customer interested in their
advertisement. You can read the
entire transcript of that
conversation
here. Unfortunately, this company isn't the only one
guilty of this type of ad.
When it comes to mortgage
advertising, misleading consumers is frequently more about
what isn't said than what is said. Take a look at
this
transcript (start at the bottom and work up) of secret
shopping another popular mortgage advertisement. This
company promotes deferring payments for six months and
promotes
a fixed interest rate in the fives. What they don't tell you is that
it takes 3.25% in fees to get the rate into the fives and they
want you to take out a home equity line of credit (or cash
out additional money on your first mortgage without telling
you that cost) and use it
to make payments on your other loan for six months! What a
great deal - you can borrow more money to make mortgage
payments and pay interest twice on those payments! It's
nothing less than irresponsible.
Why do these companies advertise this way? I can only
surmise because it works.
Once you call they become sales people; explaining that while you can get the advertised
rate there may be an
alternate structure better suited toward your needs. Don't
fall for the bait and switch; doing so only
validates their advertising decisions.
If you want the best mortgage terms you should educate
yourself as to what affects mortgage rates and be able
to evaluate a variety of options. For example, what economic data is
likely to move rates - and when and how? Work with a professional who will
not only provide but explain this
information in common sense terms so you're able to make an informed, educated
decision. I would like to be your mortgage professional.
I commit to provide you with straight talk and sound advice
enabling you to make an educated mortgage decision. I'll
provide you with mortgage and purchase options you've likely
never considered (check out a
sample case study)
and I'll do it with fixed rates you'll feel secure with.
I'll provide you with a Personalized Mortgage Plan (see
example)
that will enable you to see how one loan option compares to
another over any given period of time.
Thank you for visiting my site and thank you for your
consideration!
If you've been the victim of
false, misleading or deceptive mortgage advertising or
claims I'd like to hear your story. Please email
bbrown@firstsecuritykc.com.
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