Beware of Deceptive Mortgage Advertising

Another Mortgage Minute with Dan Murtagh! Thank you, Dan!

“With all of the regulation in the mortgage industry these days I am fascinated at some of the deceptive advertising that I still hear on the radio and on the internet. If you are shopping for a mortgage and you see a company advertise “No Hidden Fees, Points, or Closing Costs!” you may want to read the fine print and request full disclosure of the loan program for which they are advertising.

There is one thing for which I am certain, that the closing of a real estate transaction involves costs.

There are title fees, lender fees, appraisal fees and transfer/ recordation taxes… no way around that. If a mortgage broker is advertising “no closing costs” that typically means you will be paying those costs in the form of a higher interest rate. The “overage” that is made by the lender by charging you a higher interest rate is used to pay for the costs of the transaction, and you in turn will have a higher monthly payment.

When you shop for a mortgage, it’s important to understand all the terms and conditions of a proposed loan. You’ll want to compare all the costs involved in getting a mortgage and get
information from a couple of different lenders.

My best advice is to ask your Realtor or builder for a referral when looking for a reputable mortgage banker.”

The above is a Mortgage Minute by Dan Murtaugh of Sandy Spring Bank. If you are interested in discovering the best mortgage solution for you, feel free to contact him. He and Sandy Spring Bank have many different mortgage types and options!

Thank you for this post about mortgage advertising, Dan!