Many people believe that interest rates are simply set by lenders, but the reality is that mortgage rates are largely determined by what is known as the Secondary Market. The secondary market is comprised of investors who buy the loans made by banks, brokers, lenders, etc. and then either hold them for their earnings, or bundle them and sell them to other investors. When the secondary market … [Read more...]
What’s The Difference Between Interest Rate and Annual Percentage Rate (APR)?
The difference between APR and actual note rate is very confusing, especially for First-Time Home Buyers who haven't been through the entire closing process before. When shopping for a new mortgage loan, you may notice an Annual Percentage Rate (APR) advertised next to the note rate. The inclusion of an APR is actually mandated by federal law in order to help give borrowers a standard rule of … [Read more...]
Top Five Market Factors That Influence Mortgage Rates
Timing the market for the best possible opportunity to lock a mortgage rate on a new loan is certainly a challenge, even for the professionals. While there are several generic interest rate trend indicators online, the difference between what's advertised and actually attainable can be influenced at any given moment by at least 50 different variables in the market, and with each individual loan … [Read more...]
8 Questions To Ask About Mortgage Rates
Looking at today's mortgage rates and seeing what is posted may not be the best way to compare rates. The reason is that many factors can cause each individual rate and closing cost scenario to fluctuate. Even though loan officers like to preach communication, service and education all day long, ultimately, it is very difficult to figure out who to trust when going through this complex … [Read more...]