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How Do You Get The Best Rate?
A: It's not just about the best rate. There's a lot more to it than that!.
Why isn't the lowest rate always the best deal?
A: Because lower rates most often come with more points or fees.
So why do lenders advertise really low rates?
They know most consumers look at the rate and don't take other items into consideration. That advertising strategy works really well for some un scrupulos lenders. We refuse to work that way.
How about the lowest APR?
Most times the more points you pay, the lower the APR, but not the answer. A qualified mortgage professional can take each rate and fee quote to find out what's in your best interest. We will put together a no obligation cost analysis to see what really will best for you.
So What Causes Mortgage Rates To Change?
Did you know that rates can change several times in just one day ? Did you also know that mortgage rates are not directly affected by the Fed rate cuts? In most cases a fed rate cut can cause mortgage rates to go up. Mortgage rates change primarily based on:
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Inflation
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The Bond Market
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The Stock Market
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Mortgage Backed Securities
When a piece of economic data shows weakness or uncertainty in the economy, rates tend to fall.The opposite is also true. A drop in the unemployment rate, a rise is durable goods orders, a rise in the consumer confidence index--rates go up.
Influencing factors can present themselves at any time, affecting mortgage rates instantly. There is no "delay". It doesn't take time to "filter down".
Reading the paper for quotes doesn't work because the information is very old by the time it gets in front of your face. Radio, TV and billboards are not the answer because the details are always missing.
Competitive lenders, us included, can deliver nearly identical rates to each other at anytime. Most borrowers don't ask the right questions and focus only on the rate. Think math and as it pertains to you. That's all that matters.
Is a Bank Better than other Mortgage lenders?
No. Over the last several years, we have seen amazing advances in home mortgages. Today's homebuyer has the widest variety and the most unusual types of loans ever available. Mortgage lenders have dozens more of these loan programs for customers than any single lender (a bank). And most of the time, we can provide better deals. This is because we represent the WHOLESALE rates of many lenders. These are rates and fees not available to the public.
For example, ABC Bank might be quoting you 5.5% and 1 point for a loan. A broker representing the very same bank can also quote the same rate and fee. The broker is probably paying NO points for that loan. They add the point back and keep it for themselves.
They can also quote 1/2 of a point and beat the retail quote of that bank. This is the essence of broker competitiveness. The best deal is always changing from lender to lender.
A broker has so many sources and receives so much up to date pricing, you are more likely to save money than not. Next time a big national lender tells you that the broker is only a middle man and therefore cannot beat their deal, tell them you know better.
In Conclusion
As a direct lender (part of Lenders One, the Nations 9th Largest Retail Loan Originators. Many of our relationships often produce significantly better deals for the consumer. The bottom line is that there is no one source that is the cheapest. If one lender was always the cheapest, eventually, everyone would know about it, right?
The only other way most lenders can compete with one another is to somehow convince the public that they have some "secret way" of providing lower than market rates. The market is the market and you pay for it one way or another.
Only work with a professional mortgage company where the loan officers are skilled at the mathematics and can explain it in plain English. Don't feel pressured, and stop looking at just rate, or just cost! Don't gamble with something as important as your mortgage.
LET US "DO THE MATH" by giving you our Total Cost Analysis report.
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