Different River

”You can never step in the same river twice.” –Heraclitus

August 25, 2005

Public Service Annoucement

Filed under: — Different River @ 11:28 am

I just want to let everyone know, in case you ever buy a house and borrow money to do so, that if you are asked to sign a “lock-in agreement” specifying the interest rate and terms of the loan, be aware that despite the name, nothing is actually “locked in.” The mortgage company can change the interest rate and/or the terms, if they claim they “just made a mistake” by promising a rate and terms that are “not available.” They may ask you if you want the promised rate by worse terms, or the promise terms at a higher rate, or they may just “offer” you both a higher rate and worse terms. But of course, they will be happy to explain, this not a bait-and-switch, since they “just made a mistake.”

Of course, if you “just made a mistake” and based your payments on the rate and terms promised in writing, they will be more than happy to foreclose and take your house.

This concludes today’s public service announcement. Thank you for listening.

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