Mortgage rates are determined by risk spreads built into low risk or risk-free bonds, both directly and indirectly. Mortgage rates often change hourly and are affected by a borrower’s loan-to-value, credit score, geographic location, debt-to-income ratio, time horizon and selected loan product. Mortgage banks such as ours shop mortgage rates to investors to find clients the best rates and we use our own money to close. Only later do we sell our loan to the investor who services the loan. If seeking out the best mortgage rates you would be best served by seeking out a lender that is a mortgage bank.
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