When it comes to getting a mortgage loan, low rates are great. But can they sometimes be too good to be true? Here’s what to look for when you see low rates being advertised.
At Indigo Mortgage Colorado, we see borrowers come in stating that they are seeing low interest rates below 3%, usually around 2.75%-2.85%! Unfortunately, while these borrowers are hoping to have these rates matched, they do not realize they will cost them extra. The lenders offering these low rates, usually have added fees they were unaware of because they didn’t see the fine print. These rates that are below 3% include a buy down. These buy downs can cost the borrower a few thousand dollars, just to get the advertised low rate. Needless to say, this can be a shock to the borrower who is hoping to get a great deal.
At Indigo Mortgage Colorado, we never advertise or focus on rates with a buy down, unless it is specifically requested by the borrower. It’s our goal to guide our borrowers during the home buying process and we want to ensure they have the best options possible. We encourage you to stay local for your loans in Colorado and to shop around for the rates that are best for you. For any questions, the Indigo Mortgage Colorado team is here to help!