You'll NEVER get the lowest rate on your mortgage.

I am continually amazed at the misrepresentations mortgage brokers use on their advertising:

Lender411.com uses terms like "best" and "lowest" rates for their mortgage shopping portal.
AAXA Discount Mortgage offers the "best rates possible" and tells us that if we're "searching for the best possible rate, our search ends right there"
LoanSnap is my personal favorite.  It tells me that the dispayed rates are "today's best mortgage rates"
Finally, in my home state. e-mortgages tells me that they have the "lowest rates in California"

So why am I so worked up about this ???    Here's the answer:  It  is absolutely impossible to advertise that you have the best rates or lowest rates, truthfully.

Let me give you an example:

1- Go to google and enter in quotes:  "lowest mortgage rates"- 519,000 hits
2- Now enter in quotes: "lowest mortgage rates"+california- only 243,000 hits...that's better.
3- Finally, enter in quotes: "lowest mortgage rates"+san diego down to 109,000 hits..wunderbar!

Now let's shop for the lowest rate and call every one of the 109,000 entries and verify the terms of the mortgage.  Each call should last 3 minutes and I'll be dialing straight for 10 hours a day.  I can talk to 200 mortgage companies in that time.  It will take me 545 days to get through all of the entries for "best mortgage rate"+san diego.  Do you think that the best rate might have changed in a year and a half?

So...advertising that you have the "best" or "lowest" rates gives you a 1 in 109,000 chance of being correct; the other 108,999 entries are published liars.  We all go to the same places for money; Wall Street.  It is absolutely impossible to "guarantee" or claim you have the lowest rates!

Can you understand why I am inclined to drink the occasional adult beverage?

Comments

[Rhonda Porter]

Hey Brian, FYI... I referenced this post at RCG. http://www.raincityguide.com/2007/03/11/why-selecting-a-lender-by-rate-alone-is-not-in-your-best-interest/

[Tom Armstrong]

Brian,

Pour me one will ya? %*}

Tom

[Chuck Benedon]

Best is subjective, but in any case, it should be detailed as what that means on each site. eg: We post best rates based on .... And that is a bit more open and forthcoming than just "Best Rates" because Murphy's law will always apply. Try my site, you will get the "best" rate from dozens of lenders, instantly and qualified at the same time. One of kind, patent pending software.