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Rate Tips
What really moves mortgage rates, APR vs. rate, and how points are priced.
Overview
Mortgage rates track mortgage-backed-bond pricing, not the Fed funds rate and not the headline you saw this morning. Your personal rate is then adjusted for credit score, loan-to-value, property type, occupancy and loan size. These guides explain the mechanics so you can judge whether a quote is genuinely good and whether paying points fits how long you'll keep the loan.
Who this is for: Anyone shopping a rate right now or deciding whether to buy it down.
What you'll learn
- •Why Fed announcements often move mortgage rates the opposite direction
- •Rate versus price: how points and lender credits are two sides of the same sheet
- •APR and what it does and doesn't capture
- •Pricing adjustments for credit score, LTV, manufactured homes and cash-out
6 guides in this topic
Rate TipsRate Secrets You Need to Know
Mortgage rates are not one size fits all! Many factors, both personal and property or transaction wise will affect the rate you will receive. Read on for more…
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Rate TipsMortgage Rate Averages Nationwide
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…
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Rate TipsThe Truth About Online Rate Quotes
When shopping for a home loan, it’s easy to feel overwhelmed. Ads are literally everywhere — so how do you cut to the chase and find the best rate for…
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Rate TipsHow Rates Move, and APR vs. Rate
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…
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Rate TipsThe 2 Components of Mortgage Rates: Upfront Cost and the Rate Itself
Your "price" of your home loan is the rate plus any lender fees for that rate. The rule of thumb is the higher the rate, the lower the lender fee and vice…
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Rate TipsA Fed Hike or Cut Means Very Little for Mortgage Rates
There's a common misconception that the Fed "sets" (or hikes/cuts) mortgage rates directly. Even among people who know better, there is often a belief that changes in the Fed Funds Rate…
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No credit pull to start, no sales pressure, and a real quote you can compare line by line against any bank or big lender.