Low rates are often too good to be true.

A red hot housing market always brings tempting – but troublesome – mortgage offers. If we learned anything from the last crisis, well, rest assured, scammers learned even more. And they’re using the knowledge to try and trick us again.  Here are some government-released guidelines about how to read the advertisements.

A Low “Fixed” Rate may come with the key word “fixed.” But some of those deals end after an introductory period of 30 days. Know always when and how your rate will change.

Very Low Rates are good when it comes to interest rates, yes. But when we’re talking about payment rates, it’s another story. See, the whole point of a mortgage is buy your house with monthly payments so you can, um, one day own it. No payments, no house. It’s still the banks and you might as well be renting. But some mortgage companies give you a payment rate that’s even lower than the interest rate and guess what? That term has a complicated name –  negative amortization – that means the amount of money you owe will actually increase over time! Yes, the exact opposite of what you’re trying to do. Don’t bite. Make sure your payment rates are appropriate and your interest rates are low.

Very Low Payment Amounts, again, not good. No matter how well the real estate market does, no matter how desirable your property, you cannot make money selling the place later unless you own it. Or even part of it. If your payments are too low, the bank gets all the profit.

Plus ads quoting a very low payment amount probably aren’t telling the whole story, says the government’s Federal Trade Commission. Sometimes they’re interest only loans and if that even sounds tempting, know your payment may go up after an introductory period. You may end up owing a “balloon” payment, a huge lump sum usually due at the end of a loan. If you don’t have the money? Then you may need another loan – which please remember – means new closing costs, and potentially points and fees. And if housing prices are falling, forget it. Those loans will be hard to find.

Teaser Rates typically lure you in before you sign and commit to payments you didn’t see coming. Here are some red flags:

Mortgage rates near 30-year lows!

Rates as low as 1%!

You are paying too much!

Who doesn’t want to reduce their mortgage payments?

Loan amount $300,000 – pay only $900 per month!

QUESTIONS TO ASK WHEN SIGNING A MORTGAGE

Also, don’t fall for Official Lookalikes, which try to scare you into taking action. Beware: almost anyone can legally get your information from public records, says the Federal Trade Commission, and then send you a letter containing information about your mortgage and lender. Don’t bite, they’re most likely trying to sell you something if the mailer contains:

Important Notice From Your Mortgage Company.

Open Immediately — Important Financial Information Enclosed.

Please do not discard — account information enclosed.

Government imposters tell you about exclusive federal loan programs or the ability to negotiate your existing adjustable rate mortgage. Of course, you must contact them immediately. Don’t be fooled by pictures of the Statue of Liberty or other government symbols. If you’re concerned about a mailing you’ve received, contact the government agency mentioned in the letter. If it’s a legitimate agency — and not one that just sounds like a government agency — you’ll find the phone number in the Blue Pages of your telephone directory.