By Jason Russell:
This month I’ve decided to offer some words I’ve recently read about regarding Bankrate.com – and a great way to avoid 411 charges.
The Bankrate website draws millions of visitors, promising to give a listing of companies and their rate and cost offerings for mortgage loans, and even passes that information on to most of America’s largest newspapers as fact. It has always proclaimed itself to be a tool for the consumer – delivering information and advice.
A lawsuit is in the works against Bankrate, after hundreds of consumers complained about lenders who failed to deliver the rates and terms they promised on the website. Why would a lender post rates and terms they are unwilling or unable to honor ?
Unfortunately, this is a common tactic to lure consumers who want to believe that they are getting an interest rate or cost package that is significantly lower than all the competition. When the consumer finds out they are not getting the package they were promised, they likely have wasted enough valuable time that they feel somewhat stuck to use whatever terms the lender offers .
There are genuine reasons that the terms of a loan package can change. When working with a reputable lender, it would generally only be caused by a change from what was submitted on the loan application, a change in credit, income, employment, debts or assets.
There are reputable lenders on Bankrate, and some of those lenders were the ones who prompted the lawsuit in the first place. As they were offering ‘real’ interest rates and terms they could actually honor, they could see that consumers would instead be contacting the less-reputable lenders who were posting completely unrealistic rate and cost offers. And the consumer might not find out the difference until it was too late.
The internet at large can be a great place to gain basic information about a home loan, but the lawsuit illustrates the need to tread carefully when using the Internet in researching mortgage rates. A home loan is generally the largest financial transaction of your entire life – working with a real professional who can advise you on correct strategies and programs for your needs is a must.
A quick consumer tip….this is not an ad…..
The average amount an individual spends on directory assistance calls each year is $36, but heavy users can spend over $300 a year. And those calls can cost anywhere from $1.25 – $1.75 each…worse yet, directory assistance calls from a land line come with an even steeper price tag, as carriers often charge anywhere from $2 to $4 per call.
Use 1.800.373.3411 from your cell phone or land line and avoid those charges. The service works just like GOOGLE, commercial radio, or television in that businesses pay to sponsor the service in exchange for presenting their advertisements to customers. When you call 1.800.FREE.411 an automated voice recognition system will ask you for a location, type of listing and name. And in return for the free info, you’ll occasionally hear an advertisement from one of the sponsors.
*Market Insights*
The news week has been slow but the Fed speakers were out in full force, injecting opinions about inflation and the economy. San Francisco Fed President Janet Yellen said that inflation was still a risk, and the Fed should be prepared to raise interest rates further. Cleveland Fed President Sandra Pianalto believes inflation is moderating…and further believes that the economy still has not fully absorbed the rate hikes. She voted for a pause in order to accumulate more information before deciding if further hikes are needed to keep inflation contained.
So is inflation running rampant, or under control? Is the economy still picking up steam, or moderating?
The market isn’t quite sure how to react to the somewhat mixed messages of the week – and home loan rates remained relatively stable for the week overall.
For what it’s worth, inventories are increasing, which means more choice and buying power for the consumer…..always a good thing.
Best Regards – Jason
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Jason Russell, Broker Rob Wolf and Associates
Residential & Commercial Financing
850 Montgomery Street, Suite 100
San Francisco, CA 94133
1-415-788-1334 – office 1-866-313-5709 – fax
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