For example, right now there’s a commercial on TV advertising $2.99 gas for the 2 years!!! Does anyone truly believe Dodge Auto Company is being nice?

Everyone knows that a gallon of gasoline cost between $3.80-$4.50 depending on where you are. So why do people take the $2.99 marketing ploy? Because advertisers know will buy when they hear FREE. Maybe this is why car salesmen have the reputation they do. It’s dishonest…but people buy so they keep on selling the “bait and switch” approach…

Same with the mortgage industry. When you do a home loan there are lots of people involved in the process and all these people run legitimate businesses and all of them have fees.

Banks have underwriters who are on salary, your home will have to be appraised, you’ll probably need a survey, your loan company is not a non-profit, and the title company isn’t either. So when you’re hearing “NO cost refinance” all the bank is doing is offer you a higher rate without individual fees like title, appraisal, survey, loan origination. So chances are when you get a NO Cost refinance you end up getting a much higher rate than necessary.

Or back to the car example, all Dodge is doing is selling a car for a higher price, say 1-3K more, and then offering “Free gas.”

Don’t fall for it. In fact, if someone says they offer no cost anything beware.