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Welcome to a page intended to uncover some of the "mysteries" in the mortgage industry. These are things the retail
lenders don't usually tell you. It is our pleasure.
Banks and lenders price the money they lend based on many factors. Why? Because of the banks' investors'
guidelines or the guideline of Fannie Mae and Freddie Mac. Therefore, to ask, "What's your 30 yr Fixed interest rate?"
is like asking, "What does an automobile cost?" In the automobile example, it depends on what make/model/year and
with what options, engine and transmission is involved. That is the reason your licensed loan consultant needs
answers to several questions before he/she can accurately quote a rate/price.
Some of the factors that adjust the PRICE of the money that lenders lend are:
Loan Purpose
Type of Loan
Property Type/Use
Loan to value ratios (including 2nds and equity lines)
Borrower(s) debt ratios
Which state the property is in
Borrower(s) credit scores and credit history
Loan size
Escrow or not escrow for hazard and taxes
Interest rate desired
The lender's investments
These are called price adjustments and the reason Ms. Smith and Mr. Jones may have different pricing or rates on the
very same house in a subdivision. We at Mortgage Resources strive to find the fewest adjustments for your loan so
appreciate your patience with the questions to determine what may or may not apply.
The last item refers to the lender's investments. As the lender's investments vary in value, as well as supply and
demand, the lender may change pricing during the day or, even, more than once a day. This is a tremendously fluid
environment. One of the easily visible indicators of price changes is the yield on the 10 year bond. As that yield
changes through the day, pressure can be put on the pricing of some rates.
Therefore, a price/rate on a loan during the morning may change by the afternoon. Changes from day to day are the
norm. Understanding this makes it clear that getting price/rate from one lender in the morning and another in the
afternoon or the next day is like comparing apples to watermelon.
* Deepest cuts for loans with Fannie Mae Approve/Eligible and Freddie Mac Streamline Accept and Accept Plus. This offer does not apply to Fannie Mae
Expanded Approval levels, Freddie Mac Standard Accept, borrowers with more than three investment properties and using that income to qualify,
non-conventional, subprime or loan amounts under $100,000.
lenders don't usually tell you. It is our pleasure.
Banks and lenders price the money they lend based on many factors. Why? Because of the banks' investors'
guidelines or the guideline of Fannie Mae and Freddie Mac. Therefore, to ask, "What's your 30 yr Fixed interest rate?"
is like asking, "What does an automobile cost?" In the automobile example, it depends on what make/model/year and
with what options, engine and transmission is involved. That is the reason your licensed loan consultant needs
answers to several questions before he/she can accurately quote a rate/price.
Some of the factors that adjust the PRICE of the money that lenders lend are:
Loan Purpose
Type of Loan
Property Type/Use
Loan to value ratios (including 2nds and equity lines)
Borrower(s) debt ratios
Which state the property is in
Borrower(s) credit scores and credit history
Loan size
Escrow or not escrow for hazard and taxes
Interest rate desired
The lender's investments
These are called price adjustments and the reason Ms. Smith and Mr. Jones may have different pricing or rates on the
very same house in a subdivision. We at Mortgage Resources strive to find the fewest adjustments for your loan so
appreciate your patience with the questions to determine what may or may not apply.
The last item refers to the lender's investments. As the lender's investments vary in value, as well as supply and
demand, the lender may change pricing during the day or, even, more than once a day. This is a tremendously fluid
environment. One of the easily visible indicators of price changes is the yield on the 10 year bond. As that yield
changes through the day, pressure can be put on the pricing of some rates.
Therefore, a price/rate on a loan during the morning may change by the afternoon. Changes from day to day are the
norm. Understanding this makes it clear that getting price/rate from one lender in the morning and another in the
afternoon or the next day is like comparing apples to watermelon.
* Deepest cuts for loans with Fannie Mae Approve/Eligible and Freddie Mac Streamline Accept and Accept Plus. This offer does not apply to Fannie Mae
Expanded Approval levels, Freddie Mac Standard Accept, borrowers with more than three investment properties and using that income to qualify,
non-conventional, subprime or loan amounts under $100,000.
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