Just too good to be true
May 18, 2014 | Posted by: Mike Garganis
Here is the perfect example of a low rate that is too good to be true.
Investors Group 3 year Variable Prime minus 1.01%.
Okay, ready.... here you go.
- Fully closed
- No transfer
- No porting
- Responsible for legal and administrative fees
- Prepayment charges
- Not eligible for renewals or early renewals
- Not eligible internal refinances
- Closed terms that are not eligible to be paid out (EXCEPT UPON THE BONAFIDE SALE OF THE PROPERTY)
- Payments are based on the 3 year fixed posted rate at the time of funding.
This is all in the fine print.
I'm not one to knock competitor products, but really sit down and figure out if this sounds right to you.
Of all the lenders I have access to, I have never seen these type of restrictions.
Everyone is free to do what they want, and I see realtors all over social media re-Tweeting it and 'Like'ing it, but make sure you get the facts and not just what the up front number shows. I wrote something a few months ago called the "Trojan Mortgage".... here you go.
Just a message to the realtors as well, if you think this will help in qualifying a client for a deal because of the low rate, think again.
ALL MORTGAGE PRODUCTS THAT ARE NOT 5 YEAR CLOSED FIXED RATE MORTGAGES, NEED TO BE QUALIFIED WITH THE QUALIFYING RATE OF 4.79% (as of May 14, 2014, recently reduced from 4.99%).
You want options and flexibility, not limitations.
You want the right mortgage or Secured Line of Credit for your situation.
Contact me today for answers to your questions.