The fine print on teaser rates

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Q: I'm buying a house right now, and I have a mortgage broker I really like. But I keep seeing advertisements that say the going interest rate is 5 percent. My mortgage broker keeps quoting me 5.5 percent, though. I do trust her, as she has worked for my parents and siblings for many years, but is that legitimate? A: Go back to those mortgage adverts that piqued your interest. Scroll down -- see all that fine print? Dollars to doughnuts says that's where you'll find the reason that teaser rate is so low, when your family's trusty mortgage pro says the rate you qualify for is actually a half-point higher. Mindset Management I sometimes think the Declaration of Independence should be revised to guarantee every American the rights to life, liberty and the pursuit of the lowest mortgage interest rate -- that's just how rate-obsessed most smart homebuyers are. However, a mortgage's interest rate should never be looked at in isolation. It is inextricably intertwined with a number...