Beware of some Interest rate deals

Well the rates for 5 year money are unbelievable  now....but I was talking to someone on the weekend who had a good warning: his company is offering even lower rates than the high 3%s that most are offering. I asked what the deal was.  While it is possble to get a rate in the low 3s, you need to be really careful about the terms.  From how he described it, the restrictions on prepayment mean that although the rate is lower, one could end up paying more than they would had they gone with a higher rate.  So as I have always said, use a mortgage broker and have them tell you not only the rate but also the key terms and how this will affect you.  My most recent mortgages I did not go with the lowest rate for exactly that reason....."rate shopping" could end up biting you!