Read the truth behind deceptive mortgage ads

Getting a low interest rate on your mortgage can make a big difference in your household finances, and the internet can be a good way to compare the rates offered by various lenders. The FTC’s case against GoLoansOnline.com shows the value of shopping around and checking multiple sources of information.

One of the most important considerations is whether a loan is offered at a single fixed rate for the life of the loan, or whether it is an adjustable loan with a rate that changes over time. The FTC recently sued GoLoansOnline.com, alleging that the company deceptively advertised variable interest rates as fixed rates on its site, fhamortgage.com. The site prominently advertised attractive mortgage rates — for example, a 2.5 percent “fixed-rate” — as well as monthly payment quotes reflecting those low rates.

The site’s disclosure page revealed that the interest rates glaringly advertised as fixed-rate mortgages were, in fact, for adjustable rate loans. The prominently advertised low fixed rates were not likely to be available to the average consumer. But the FTC says this information was obscured and in fine print. It’s against the law to bury disclosures in fine print that contradict a more prominent advertising pitch.

If you’re shopping for a mortgage, check out multiple lenders. Compare rates and fees and read lender reviews to find the best loan for you. Figure out how much of a down payment you can safely afford, and find out all the costs involved in the loan. Knowing just the amount of the monthly payment or the interest rate isn’t enough. Get information about the same loan amount, loan term, and type of loan from each potential lender so that you can compare “apples to apples.” Use the Mortgage Shopping worksheet and online mortgage calculators to help you estimate monthly mortgage payments for various loan amounts, interest rates, fees, taxes, and insurance costs.

Learn what to look for when shopping for a mortgage and how to spot deceptive mortgage ads.

 

Leave a Comment

Commenting Policy

Este es un blog moderado; revisamos todos los comentarios antes de publicarlos. Esperamos que los participantes se traten respetuosamente entre sí y que traten con respeto a los demás bloggers. No publicaremos los comentarios que no cumplan con nuestra política de comentarios. Si un comentario incluye un enlace a un sitio comercial, quitaremos el enlace y publicaremos el comentario. Sólo editaremos los comentarios para quitar los enlaces comerciales.

No publicaremos:

  • spam ni cometarios no relacionados con el tema del blog
  • comentarios que contengan lenguaje vulgar, ataques personales o términos ofensivos dirigidos contra grupos específicos
  • ofrecimientos de venta o promociones
  • comentarios que contengan información que sea obviamente engañosa o falsa
  • comentarios que contengan información personal, como por ejemplo, domicilios privados

Los comentarios enviados a este blog se convierten en material de dominio público. Para proteger su privacidad y la de las demás personas, por favor no incluya información personal. No use este blog para reportar el fraude. Si desea puede presentar una queja. Si tiene preguntas sobre la política aplicable a los comentarios, por favor contáctenos.

Read Our Privacy Act Statement

It is your choice whether to submit a comment. If you do, you must create a
user name, or we will not post your comment. The Federal Trade Commission Act
authorizes this information collection for purposes of managing online
comments. Comments and user names are part of the Federal Trade Commission’s
(FTC) public records system, and user names also are part of the FTC’s computer
user records system. We may routinely use these records as described in the
FTC’s Privacy Act system notices. For more information on how the FTC handles
information that we collect, please read our privacy policy.