“Buyer Beware” when shopping for mortgage online

The Wall Street Journal reports that a former advertiser is suing “Bankrate.com” a popular online mortgage resource. The suit accuses the site of allowing its web site to be used for “bait-and-switch” loan pitches.

The suit includes evidence that some lenders advertising on the site may have posted mortgage rates they did not plan to honor.

The Journal suggests that if you shop for a mortgage online you should do two things:

1. Check complaint sites like ripoffreprot.com or bbb.com for “concerns about inividual lenders.”

2. Always get more than one bid for your loan and compare their Annual Percentage Rates (APR), not the posted rate, to see which one is a better deal.

For information on mortgage terms, click here.

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