Mortgage rate averages nationwide

My rates are typically lower than these listed averages by .25% or more!

Some rate tips-- higher the lender fees (including points) the lower the rate. whether you pay points for a lower rate or not depends on your personal scenario and the potential for lower rates going forward. It's anyone's guess where rates are headed, however an experienced loan officer can detail out the trends to help you decide on a path that's best for you.

How and why rates move

Conventional and Government lenders set their rates based on the pricing of Mortgage-Backed Securities (called MBS) which are traded in real time in the bond market. 

This means rates and loan fees (called mortgage pricing) move throughout the day, affected by a variety of economic or political events.

When MBS movement is positive (green), mortgage pricing generally goes down. Negative MBS movement (red) means mortgage pricing is increasing. Tracking these securities real-time is critical to assist in obtaining you the best loan pricing.  For more information about the rate market, contact me directly.  I’m among few mortgage professionals who have access to live trading screens during market hours. 

​Closing costs and lower rates-what to know

Why isn't the lowest interest rate the most advantageous option? Initially, lower rates typically entail higher lender fees (points). It's important to consider a break-even point when factoring in closing costs, points, and fees. For instance, if obtaining a specific rate costs $5k while a higher rate comes at no cost but results in a $50 higher monthly payment, it could take up to a hundred months to reach the break-even point! Given that the average loan duration is 60 months or less, this scenario doesn't seem logical.

Why do lenders promote extremely low rates along with numerous points and fees?  Because they understand the majority of consumers only consider the interest rate and neglect to calculate the overall costs. Regrettably, this marketing tactic proves to be highly effective on many individuals.

It's important to understand what factors affect the final rate you receive at closing time

The transaction, it's terms and your unique qualifying criteria will have a direct affect on what your final rate will be. That's why it's nearly impossible for an online lender to give you an immediate, accurate rate quote, since their published rate is the best they offer for a one in 20 top qualified borrower with a typical huge down payment and 800+ credit score, among other factors-- and 19 out of 20 borrowers won't meet that criteria. Here are the factors that affect a rate: