I am often asked the question, “What is your rate today?” Sometimes the question is asked differently but the intent is the same… people want to know what the LOWEST rate available is typically on the 30 year fixed mortgage. I think it is vitally important that people understand the TRUTH about mortgage rates before shopping around. Here is a quick list of some facts about mortgage rates that I will spend the next few posts breaking down…
- All mortgage lenders are going to offer similar rates and fees. (vast differences indicate misunderstanding or deception)
- The Fed does NOT determine the 30 year fixed mortgage rate.
- The specifics of your mortgage application can have a HUGE impact on your rate.
- Your rate and the amount of closing costs you pay are connected.
In the next post I will break down my first point. This is one of the most important because people are often motivated to save money and can be tricked by gimmicks that sound great upfront but have unforseen consequences!