What's my rate?
Many mortgage companies advertise the lowest interest rate available for their select products, but is this the rate you actually qualify for?
A mortgage interest rate will vary depending on:
- Your credit score
- The amount of your loan
- The ratio of your loan to the value of your property
- Your objective (rate and term refinance, cash out refinance, or purchase transaction)
- The product type
While mortgage companies will advertise the absolute lowest rate for a given product as a marketing tactic, we feel this is a somewhat deceptive practice and don’t feel it’s appropriate to engage in the same tactics.
Here’s a little known secret that’s important to know: All lenders offer the same rates!!!
Yep, you read that correctly. It’s the cost (or credit) of each rate that is different. XYZ Mortgage may offer you a 30 year fixed mortgage @ 3.75% with 1 ½ points, while America’s Home loans may offer the same rate with no points. Most consumers are unaware of this and need to know how it works. So it’s important not to ask “What’s your rate,” but how much a specific rate will cost (or what the credit back to you will be). Ask the cost or credit for several rates and now make a comparison between different offers.
Next, it’s critical to know what the national average mortgage rates are. Freddie Mac posts a weekly survey of mortgage rates offered across the country and can be found here. This will show the rate, and the points/fees it will cost to get it. This is a great place to start so that you have a basis for what is reasonable. If the national average is 3.75% with .6 points and a lender is offering you 3.25% with no points, this may be a ploy to get you to commit to an application—only to find the terms change down the road. Do your research and know before you owe.
America’s Home Loans operates in the wholesale channel of the mortgage market and offers extremely competitive rates, often below the national average and the high profile, highly marketed mortgage companies you may see in the media each day. We have much less overhead than they do and pass the savings on to you-the consumer.
Give us a call — you will be happily surprised.