One question clients always want the answer to is “what’s my interest rate?” The answer to that depends on a variety of factors. To help you understand how interest rates work, my latest Mortgage ABC’s video features three important truths about interest rates.
Three Important Truths about Interest Rates
1. Interest rates quoted on the internet do not necessarily reflect “today’s rate” for your loan scenario. They also do not typically disclose the cost for the interest rate advertised, which is often times exorbitant.
2. Interest rates change daily. The interest rate you’re quoted any given day expires that day unless you lock in. Also, you must get lender quotes the same day to compare apples to apples.
3. There is more than one rate option daily. Lenders actually work off of a rate sheet and can offer multiple rate options depending on what you want to pay.
As always, I highly recommend shopping for your lender, instead of your interest rate. A lender that is looking our for your best interests will wait for an opportune time to lock your rate in, and will explain all your options so you can make an informed decision.