Amerisave-- 3/20/09-- DoThey Lie?

Just saw an ad from Amerisave with date of 3/20/09-----

30 yr fixed   4%, 4.335% APR.   Haven't run the #'s, be I smell bait & switch.   Gotta be at least 2.5pts just to get to par---not including closing costs or origination.

http://www.amerisave.com/rateResults.cfm?WebSearchID=20793859

	Rate	Payment	APR	All Lender Fees & Points	Closing Costs	Loan Details
	4.250%	$910	Calculate	$6,360	View	View
	4.375%	$924	Calculate	$4,625	View	View
	4.500%	$937	Calculate	$4,029	View	View
	4.625%	$951	Calculate	$3,524	View	View
	4.750%	$965	Calculate	$2,939	View	View
	4.875%	$979	Calculate	$2,072	View	View
	5.000%	$993	Calculate	$1,621	View	View
	5.125%	$1,007	Calculate	$1,271	View	View
	5.250%	$1,022	Calculate	$791	View	View
	5.375%	$1,036	Calculate	$218	View	View
	5.750%	$1,080	Calculate	$-87	View	View
	5.875%	$1,094	Calculate	$-509	View	View
	6.250%	$1,139	Calculate	$-603	View	View
	6.375%	$1,154	Calculate	$-888	View	View
	6.500%	$1,169	Calculate	$-1,260	View	View

so.....I didn't see 4%...hmm

Atlanta Lender Offering a '4% Mortgage,' But...

Amerisave Mortgage Corp. of Atlanta is offering consumers a 4% 30-year fixed-rate loan — but with strings attached. At press time, the mortgage lender was advertising a 4% 30-year FRM on its website (APR: 4.357%) but when a consumer called for more information she was told that to get that rate she would need a FICO score of at least 720 and a downpayment of 15%. Points were not discussed but on its website Amerisave is telling borrowers that the lower rates carry higher fees and points. On one low-rate, 30-year loan the fees/points totaled almost $11,000.

Per: http://www.amerisave.com/rateResults.cfm?WebSearchID=21001238
Rate Payment APR All Lender Fees & Points Closing Costs Loan Details
4.000% $1,671 Calculate $12,163 View View
http://www.amerisave.com/app/closingcosts.cfm?CID=13675711&CID2=0&DiscountPointsOption=0


Rate locks are guaranteed by the lender, not by Amerisave.



Amerisave's float down policy protects you in the event that rates go down after you lock in a rate before you close your loan. If rates are at least .25% lower with the same closing cost and your loan is final approved, prior to closing documents being drawn, you can then float down your rate. The new rate will be half way between your original locked rate and the current rates offered by the investor your loan is locked with. For example, if you locked at 6.00% with $2,000 in closing costs and before you close a 5.50% at $2,000 in closing cost is available you at your request the new rate would be 5.75%. The float down is rate only not fees. The option to float down your rate is at no charge but is subject to availability with the investor your loan is locked with. You must request the rate through your advisor as the published on line rates are based on multiple investors and your advisor can confirm what is available as a float down rate for you based on the specific investor your loan is locked with.




You may want to call your wholesale account executive and ask why this float down option is being offered through Amerisave. Amerisave is not the LENDER and in the past when pricing a rate through Amerisave it would show the LENDERS it was pricing through many of these LENDERS are the same LENDERS that many mortgage shops use. Seems to me if this is being offered to Amerisave through Amerisave LENDERS it should be offers across the board.

I am sure if the mortgage broker/lender community does some investigation on Amerisave and has
questions?


They might want to call there wholesale account executive and the following:
Cynthia Griffin 850.313.9890
Corporate 866.814.9260 x6785

Quote on both web page, then supported on the phone by LO, and also sent to me at the time in email:

4.75% with zero cost (no points, no fees). So $35 application fee, and $350 appraisal fee, was paid, along with agreement to $500 "lock cancellation fee"

1) Credit rating turned out to be even 50 points higher

2) Mortgage rates fell another 0.05%

3) Loan docs show rate of 5.316% APR with fees of $7443!

bait-and-switch scam, fraud, and RIPOFF.

agreed.