Why is this Mortgage rate offer only 3.74% -- is it real?!?

[bs9999]

I am new to mortgage and need a little hand-holding here.

Was going through redflags list of mortgage rates @ http://www.redflagdeals.com/deals/main.php/financial/mortgagerates/

and found this:

MCAN Mortgage = 3.74%

I gather it is a 5-year Variable Closed Mortgage ... but at 3.74% you can clearly see it is significantly cheaper than anyone else on that list...

Can someone tell me, what is the catch...are these guys reputable?



Thanks

[pitz]

Very likely just quoting a teaser rate. The first 6 months might be at that rate, until it adjusts upwards.

[bs9999]

Very likely just quoting a teaser rate. The first 6 months might be at that rate, until it adjusts upwards.

Oh yea..that would prolyl be it ... i do notice First National on that list is 4.95% ... and it too is under the "Variable" column...Doesnt that Variable column represent 5-year Closed rate?

I guess the best way to know is to call and find out...I will do that when i get up later today.

[sgozali]

Yes, that's a teaser rate.

MCAP's VIP Select products:

Prime-2.51% for the first 3 months (on going rates of Prime-0.40%)
Prime-1.75% for the first 6 months (on going rates of Prime-0.40%)
Prime-1.00% for the first 12 months (on going rates of Prime-0.40%)
Prime-0.60% for the five year term