Mr. Me

A little glimpse of me.

What a Deal!

· by Mr. Me · General · 1 comment

Yesterday, older son looked out the front door to see if it was still raining and found a UPS Express envelope on the front porch.  It was from my mortgage company.  I wondered what might be inside.

Advertising.

My mortgage company wants me to refinance my home mortgage.

I looked at the rates and other information and saw that I could cut my interest rate by 1% and have a sub-4% interest rate.  It looked like it might be something that I might investigate further...

...until I read the fine print.

It said that the rates and other information was based on the assumption that the borrower would purchase 1% discount at closing.

Wait, WHAT??

I can decrease my interest rate by 1% by pre-paying the 1% at closing??

In other words, this refinancing plan gives me no advantage at all and the mortgage company would gain thousands of dollars in closing costs.  What a deal!

1 comment

Comments are closed. These are preserved from the original blog.

  1. Giggles

    Any time we get a refinancing advertisement, the closing costs for the refinance would be more than we'd end up saving. They're counting on the illiteracy rate being high in this country. Darn you knowing how to read! ;)