We have all at one time or another heard the saying; if something is too good to be true then it often is. Now as things are currently in the real estate market where many people are really suffering financially, there are many who are seeking the lowest possible interest rates. However, apparently what appears to be the best may turn out to be the worst.
What is the truth?
Banks are ultimately and fore mostly in business for themselves. They are a business and most of them are extremely wealthy and successful businesses, all of which are due to your loyal support. They are not so much in business to help and assist you as they are in business to enrich them. Oh yes they have all these wonderful advertisements about all the wonderful folks that they have helped, but the reality is, they only help as long as it is in their own best interest. The moment you are mess up whether due to the terrible economy or an own stupidity, it does not matter, the moment you fail to cough up on your loan payment, the does not matter whether you are related to the president, your goose is cooked.
Where does that leave you?
Therefore, the so-called shopping for a super low interest rate is not completely, what it seems. In the end, the banks are the traders in interest rates. Quite plainly, they hold all the cards; they are not going to give away anything free. So why would they sell anything below the going rate, doing so would mean they are losing money. Banks do not do that unless they have a way to recover that loss. It comes down to simple mathematics, if they are selling at a fixed rate then what ever they or some intermediary say, they will ultimately expect to recover their money. Why, because that is the way that banks operate.
The end user will ultimately pay the bill
The true of the matter is, the bank is selling a service or product for which there is a fixed and predetermined price. From time to time, there might be slightly lower rates as are part of the bank’s strategy to promote themselves or their services. Overall, to expect extremely low rates or at least suspiciously below the going rate are equal to belief in the tooth fairy. It is as unlikely to happen as a snowstorm in the middle of summer. anast
We have all at one time or another heard the saying; if something is too good to be true then it often is. Now as things are currently in the real estate market where many people are really suffering financially, there are many who are seeking the lowest possible interest rates. However, apparently what appears to be the best may turn out to be the worst.
What is the truth?
Banks are ultimately and fore mostly in business for themselves. They are a business and most of them are extremely wealthy and successful businesses, all of which are due to your loyal support. They are not so much in business to help and assist you as they are in business to enrich them. Oh yes they have all these wonderful advertisements about all the wonderful folks that they have helped, but the reality is, they only help as long as it is in their own best interest. The moment you are mess up whether due to the terrible economy or an own stupidity, it does not matter, the moment you fail to cough up on your loan payment, the does not matter whether you are related to the president, your goose is cooked.
Where does that leave you?
Therefore, the so-called shopping for a super low interest rate is not completely, what it seems. In the end, the banks are the traders in interest rates. Quite plainly, they hold all the cards; they are not going to give away anything free. So why would they sell anything below the going rate, doing so would mean they are losing money. Banks do not do that unless they have a way to recover that loss. It comes down to simple mathematics, if they are selling at a fixed rate then what ever they or some intermediary say, they will ultimately expect to recover their money. Why, because that is the way that banks operate.
The end user will ultimately pay the bill
The true of the matter is, the bank is selling a service or product for which there is a fixed and predetermined price. From time to time, there might be slightly lower rates as are part of the bank’s strategy to promote themselves or their services. Overall, to expect extremely low rates or at least suspiciously below the going rate are equal to belief in the tooth fairy. It is as unlikely to happen as a snowstorm in the middle of summer. anast