What did they say?

Many companies offer the option of taking a loan over 80% of the value of your property without paying the required mortgage insurance. They simply build it into the rate and tell you so. Well, they actually all don't tell you. The insurance pays the lender for the portion of the loan over 80% if the property is lost through foreclosure. In this market do you think lenders are willing to give the high loan to value loans without that protection?

For years banks have been talking about no fees but they really meant no "garbage" fees which included underwriting and doc preparation. Usually about a$500 to $600. They didn't mean no fees for third party services such as credit, title insurance and closing agent, which are real services that must be paid. Do you think that the banks are now willing to lose about $1000 to $3000 per loan?

How many times have you heard a great rate advertised where they mention it is amortized over 30 years and hoping you interpret it to be fixed over 30 years. Sometimes the rates are up to one point lower. You realize, of course, that the amortization of the loan has nothing to do with how long the payment and interest rate are fixed?

Last, but surely not least, is the no point loan advertisement. They will give you a low rate and a much higher APR, annual percentage rate. Example: 30 year fixed at 5.75% APR 6 .125%. The APR is figured by taking the monthly payment for the loan and dividing it by the amount that is the loan, not the closing costs (Simplified). If you were looking at a $100,000 loan at 6% your payment would be approx. $600 per month. If the closing cost were $2000 then the APR would be 6.122% ($600 divided by $98,000 which is the loan minus the closing costs)

Wouldn't it be easier to just mention the points so you won't have to be surprised when you go to sign the documents and the closing cost is thousands of dollars higher?

I hate to write a column that asks more questions than it answers but I am as frustrated as the next person with the way we conduct business where innuendos replace information and repetition makes it right. Many have told me it is just a trend but if so , it seems to be getting worse. What do you think?