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Personal Finances / Buying or Selling a Home


Subject:  RE: Magically Evaporating Mortgage Date:  11/4/2003  7:14 PM
Author:  cconnell11 Number:  60615 of 128887

Yes, I can believe that one double payment would knock 8 months off a 30 year mortgage...but this broker told them 8 YEARS! They expressed disbelief, but she insisted: "Yes, 8 years!"

So then they asked her: "Does that mean that we could make two double payments and knock 16 YEARS off the term?" And she said: "Yes, isn't that great?" They left her office all stoked up, not able to quite believe their luck at having found such a savvy and helpful broker!

To me, that's a red flag that the broker is incompetent or dishonest -- or both. But my friends say she said she can get them a mortgage at 4.75%, and they feel like they don't want to waste more time finding another one. I didn't vett my broker at all when I bought my house, so I don't even know if they should be concerned that she told them such an amazingly incorrect thing. But I'm worried about it. I wonder what else she is telling them that's outrageously untrue. So this is a somewhat different question:

How careful should you be in selecting a broker? Are they all pretty much the same? If one can offer you a loan at a great rate, is that all you really need to know?

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