In the last several weeks, we’ve received a number of phone calls from home buyers who’d heard Indigo Mortgage on the radio and wanted a second mortgage proposal. They’d all applied online with that national lender who’s name rhymes with “pocket”, thinking they’d get a good deal.
Each of these borrowers said they questioned if the mortgage interest rate and fees they were being charged were inflated. Well, they were all correct; their mortgage proposals were not good deals.
Indigo Mortgage provided our rate and fees, then we helped the homebuyers compare against the “Pocket” proposals.
In each case, Indigo Mortgage was able, on average, to offer an interest rate that was about a quarter percentage point lower, plus our proposal was about $4000 less in fees. That means the borrowers will save thousands over the life of the loan.
We find that the “pocket” sounding lender is consistently over-charging borrowers and giving them interest rates well above the market. This “Pocket Lender” gets away with this scam because borrowers trust the TV or radio advertisements that they see or hear. However, all of those ad expenses have to be factored into the company’s bottom line, so they charge more for mortgages in order to cover their heavy advertising cost.
The proof is in the pudding; when people shop their mortgage and compare rates and fees, they’ll often find a better mortgage deal. And when you do compare mortgage offers, always include a trusted local lender like Indigo Mortgage.