In an almost comical case of too little too late, the FTC wagged a big finger at deceptive mortgage ads Tuesday. Here’s some of the red-flag advertising language they warned consumers to watch out for:

• “Low “Fixed” Rate!”: Just how long is it really fixed for?
• “Very Low Rates!”: What’s low, the interest rate or the “payment” rate? Does this only apply for a introductory period? Is the payment so low that with interest you’re actually increasing the loan balance?
• “Very Low Payment Amounts!”: …Because it’s an interest only loan and you’ll be due for a big lump sum payment?
• “Mortgage rates near 30-year lows!”: Again, for how long is this good for?
• “Important Notice From Your Mortgage Company. Open Immediately!”: Does your mortgage company really use exclamation points on its official correspondence?
• “You are eligible to take part in an exclusive interest rate reduction program. This financial institution has been licensed to negotiate your existing adjustable mortgage to a new fixed rate mortgage. You must contact us immediately regarding this notice.” Official language doesn’t don’t make it so.

As ever, be sure to read and understand all the terms and conditions before signing any contract.

Deceptive Mortgage Ads: What They Say; What They Leave Out [FTC]
(Photo: Getty)

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