.png)
Mortgage Rates Learning Center Menu
Welcome to our Mortgage Rates Learning Center—your resource for understanding how interest rates affect your monthly payment and long-term loan costs. Get insights into rate trends, factors that influence rates, and tips for locking in the best possible rate for your situation.
Mortgage Rate Factors: How Are Mortgage Rates Set?
When it comes time to purchase a home or refinance an existing mortgage, most of our clients, for obvious reasons, start to think and ask questions about interest rates. Mortgage rates play a crucial role in the overall affordability of a home since they are one of the main determinants of monthly mortgage payments.
We all know that lower mortgage rates are good, and higher mortgage rates are bad, at least when we look at it with just the narrow focus of our mortgage rate. But what makes them go up or down? Keep reading to gain insight into how mortgage rates are set and what factors cause rates to move.
Main Factors That Influence Your Mortgage Rate
-
Economic Conditions
-
Federal Reserve Policies
-
Mortgage-Backed Securities
-
Your Personal Finances
-
Loan Characteristics
Economic Conditions
Global and United States economic conditions will determine rates and borrower costs across all types of interest rates, including mortgages. In a thriving economy, rates generally rise, and when conditions weaken, rates will generally decline. We don’t have to look too far back in history to see both ends of the economic spectrum and how rates were impacted. During the pandemic in 2020, when the economy nearly came to a halt, rates plummeted to the lowest levels in history. And as the pandemic subsided and the economy quickly rebounded, rates quickly moved to the highest levels in nearly 20 years.
Inflation, as we have learned (or relearned depending on your age) is one of the byproducts of an overheated economy. When rates are too low for too long or the supply of money is too great, inflation causes the price of our goods and services to skyrocket. And it’s not only the cost of the goods or services that goes up, but the cost of borrowing money as well.
Federal Reserve Policies
The Federal Reserve’s (FED) mandate is to promote maximum employment and stable prices throughout the US economy. In other words, the FED strives to find the balance of a strong economy and labor market without overheating the economy to a degree where inflationary conditions cause prices to rise too fast.
One of the primary tools of the FED is its ability to set the Federal Funds Rate – the interest rate at which banks charge each other to meet their reserve requirements. The Federal Reserve adjusts the Federal Funds Rate to help balance economic conditions – lowering rates to stimulate economic growth or raising rates to cool down the economy or fight inflation.
While the Federal Funds does not directly impact your mortgage rate, it does have an immense impact on the bond market where mortgage-backed securities are traded.
Mortgage-Backed Securities
Mortgage-Backed Securities (MBS), or mortgage bonds, are quite simply bundles of mortgages that are pooled together and sold on the bond market. The bonds are considered low risk, safe investments for institutional investors, which is why they generally trade in concert with other similar low risk investments like US Treasury Bonds.
It is important to understand the correlation between the underlying loans that make up an MBS and the yield paid to the owners of the mortgage bonds. The interest paid on the underlying loans becomes the yield, or return, paid to the mortgage bond owners. Like any other asset, the price of a mortgage-backed security is determined by supply and demand. When the demand for MBS is high, the yields (and interest we pay on mortgages) go down. When demand is weak, the yields on MBS goes up in order to attract investors back to MBS.
During times of economic booms, investors will likely move their money to higher yielding, more speculative assets like stocks or equities. MBS yields will have to increase. Interest rates on new originations will increase in order to be packaged into the higher yield mortgage bonds.
However, the opposite occurs during uncertain times or periods of economic downturn. Mortgage-backed securities become popular assets - demand increases, yield decreases, and mortgage rates drop.
Your Personal Finances
Ok, so all of that economic talk is great, but what about your ability to control the mortgage rate you get? You most likely can't control the US economy, so let’s focus on things you can control. Here are a few ways to put yourself in a position to get the best rate possible when it’s time to borrow money for a home purchase or refinance.
Credit Score
Your credit score is one of the most critical factors in determining your mortgage rate. Lenders assess credit scores to evaluate the risk of lending money to a particular borrower. Higher credit scores indicate lower risk, leading to lower mortgage rates. Meanwhile, borrowers with lower credit scores may face higher rates due to the perceived increase of default risk.
Before applying for a loan, make sure your credit score is in the best possible shape it can be. For ways to improve your score, check out Ways to Improve My Credit Score.
Down Payment/Equity
The size of the down payment or amount of equity in your home can significantly impact your mortgage rate. A larger down payment reduces the lender's risk because it demonstrates the borrower’s financial commitment and provides the lender with more security.
Take a look at various down payment options when it comes time to purchase a home. There are many loan types with various down payment requirements to fit your needs. If you are interested in the various loan types and their down payment requirements, check out How Much Money Do You Need to Buy a Home?
Debt-to-Income Ratio (DTI)
The debt-to-income ratio (DTI) measures a borrower’s monthly debt payments against their gross monthly income. A lower DTI indicates that a borrower has more disposable income available, which reduces the lender’s risk. While not all loans will adjust the rate based on a higher DTI, it can cause your rate to increase in some extreme scenarios.
If you would like to know how lenders determine DTI, check out Understanding Debt-to-Income Ratios: What They Mean for Loan Approval.
Factors That Can Positively Impact Your Mortgage Rate
-
Higher Credit Scores
-
Lower Loan to Value - more down payment and/or equity
-
Lower Debt-to-Income Ratio
-
Shorter Loan Terms
-
Loan is used to purchase a home or lower your current rate
Factors That Can Nagatively Impact Your Mortgage Rate
-
Lower Credit Scores
-
Higher Loan to Value - less down payment and/or equity
-
Higher Debt-to-Income Ratio
-
Longer Loan Terms
-
Loan is used to get cash out of your home
Loan Characteristics
Beyond your personal finances, the characteristics of your loan can impact your mortgage rate.
Loan Type
Different types of loans come with varying rates. For example, fixed-rate mortgages tend to have higher rates than adjustable-rate mortgages (ARMs) at the start, but ARMs can fluctuate over time, potentially leading to higher costs in the long run. Borrowers should consider their financial situation and risk tolerance when choosing between these options.
Loan Term
The length of the mortgage term also affects the interest rate. Shorter-term loans (e.g., 15 years) generally have lower rates than longer-term loans (e.g., 30 years). This is due to the diminished risk that lenders face with shorter loans because the loans are paid back more quickly.
Loan Purpose
The purpose of the loan has an impact on the rate as well. Loans used to purchase a home or to pay off an existing loan have better rates than loans that are used to get cash out of your home. Tapping into your equity can be a smart solution depending on your situation, but rates are generally a bit higher on cash out refinances.
Mortgage Rates by Loan Type
Mortgage rates can vary depending on the type of loan you're considering. It can be daunting to understand all of your options when it comes to getting a mortgage, and getting the right type of mortgage can save you thousands of dollars in interest and/or closing costs.
The two main factors that determine the best product for you are your credit score and down payment (or equity position in the home if you are refinancing.) Everyone has a different financial situation. Some loans are best for buyers with smaller down payments and some loans tend to be best for borrowers with lower credit scores. An experienced mortgage professional will guide you towards the right mortgage product based on your particular financial situation and goals, but continue reading to get a good overview so that you are more informed about your mortgage options.
Conventional Loans
Description: These are loans that are not backed by the government. Instead, they are backed by private lenders or government-sponsored enterprises such as Fannie Mae and Freddie Mac. These loans can be used to purchase or refinance a primary residence, second/vacation home, or investment properties. Conventional rates can be fixed or adjustable and generally come in terms from 8 to 30 years.
Credit Score: 620 is the minimum credit score required for a Conventional loan. However, rates for Conventional loans increase with lower credit scores, so generally speaking Conventional loans are best for borrowers with credit scores over 700.
Down Payment/Equity: Down payment amounts will depend on whether you are a first-time home buyer and the type of home you are trying to finance. First time home buyers purchasing a primary residence using a Conventional loan can put as little as 3% down. If you are not a first-time home buyer, a down payment of at least 5% is required when purchasing or refinancing a primary residence. Purchase and refinance transactions for second/vacation homes and investment properties will require 20% down payment in most cases.
Any conventional loan with less than a 20% down payment will have private mortgage insurance or PMI included in the monthly payment.
For a more detailed product description, please visit our Conventional product page.
FHA Loans (Federal Housing Administration)
Description: An FHA loan is a government-backed loan insured by Housing & Urban Development (HUD). These loans can be used to purchase or refinance a primary residence. You do not have to be a first-time home buyer to use FHA financing, but you can only have one FHA loan at a time, unless you meet one of the qualifying exceptions. FHA rates can be fixed or adjustable, and generally come in 15 or 30 year terms.
Credit Score: 580 is the minimum credit score required for an FHA loan; however, most scenarios require a credit score of 620 for approval. Unlike Conventional loans, FHA rates do not significantly increase with lower scores, making them a very attractive option for borrowers with less than perfect credit.
Down Payment/Equity: FHA requires a 3.5% minimum down payment for purchase transactions. FHA also offers several refinance options including FHA streamline refinances, FHA simple refinances, FHA rate/term refinances, and FHA cash out refinances, all with varying loan to value calculations.
All FHA loans will require mortgage insurance. There are two components of FHA mortgage insurance – upfront premiums which are financed into your loan amount, and monthly premiums that are included in your monthly payment.
For a more detailed product description, please visit our FHA product page.
VA Loans (Veterans Affairs)
Description: VA loans are another type of government loan that are guaranteed by the U.S. Department of Veterans Affairs. VA loans are strictly reserved for veterans and active-duty service members that have met the requirements for VA loan eligibility. These loans can be used to purchase or refinance a primary residence. VA rates can be fixed or adjustable, and generally come in 15 or 30 year terms.
Credit Score: 620 is the minimum credit score required for a VA loan.
Down Payment/Equity: VA loans allow for 100% financing, so no down payment or equity is required when purchasing or refinancing a home with VA financing.
An additional benefit to VA loans is that mortgage insurance is not required. However, VA does require an upfront Funding Fee that is financed into your loan amount. The amount of the Funding Fee is determined by whether you are using your VA benefit for the first time or if this is a subsequent use of a VA loan. Disabled veterans are exempt from the VA Funding Fee.
For a more detailed product description, please visit our VA product page.
USDA Loans (U.S. Department of Agriculture)
Description: A USDA loan is another type of government-backed loan insured by the US Department of Agriculture. This type of loan can be used to purchase a primary residence in an eligible rural area. Borrowers looking to use USDA financing must also have household income below the area median income. USDA considers all income from the household, not just the income from the borrower(s). You do not have to be a first-time home buyer to obtain USDA financing. You also cannot have the means to obtain Conventional financing, generally defined as having the ability to make a 20% down payment. USDA loans are only offered in 30 year fixed rate terms.
Credit Score: 620 is the minimum credit score required for a USDA loan.
Down Payment/Equity: There is no down payment required for a USDA loan. Another great and unique feature of USDA loans is the ability to finance closing costs. If the appraised value of the home is greater than the purchase price, borrowers can finance eligible closing costs into their loan, as long as the total loan amount does not exceed the appraised value.
USDA loans do have a form of mortgage insurance that they call their Guarantee Fee. There is an upfront portion rolled into the loan amount as well as a monthly component included in the mortgage payment.
For a more detailed product description, please visit our USDA product page.
Jumbo Loans
Description: Jumbo loans are for borrowers that need loan amounts that exceed their areas conforming loan limit. As of 2025, the conforming loan limit for most areas in the U.S. is $806,500. That limit is higher in higher-cost housing markets such as California, New York, Hawaii, Washington D.C. and a few others. Jumbo rates are offered in a variety of terms including 15 and 30 year fixed rates and well as 3/1, 5/1, and 7/1 adjustable rates. These loans can be used to purchase a primary residence, second/vacation home, or even an investment property.
Credit Score: 660 is the minimum credit score required for a Jumbo loan. However, your interest rate can be severely impacted by your score so you will typically need a score of 740 or higher to get a market rate for a Jumbo loan.
Down Payment/Equity: You will need at least a 10.01% down payment/equity on Jumbo loans when you are purchasing or refinancing a primary residence or a second/vacation home due to the additional risk lenders take with the higher loan amounts. You will need a 20% down payment/equity if you are using a Jumbo loan to purchase or refinance an investment property.
For a more detailed product description, please visit our Jumbo product page.
Understanding How Credit Scores Impact Your Mortgage Rate
When you’re thinking about buying a home, one of the most critical factors that will come up is your credit score. Whether you’re aware of it or not, your credit score can have a huge impact on whether or not you get approved for a mortgage, what kind of interest rates you are offered, and how much you’ll end up paying in the long run.
In this section, we’re going to break down what a credit score is, how it affects your mortgage options, and what you can do to improve your score to get a better deal.
What's a Credit Score Anyway?
A credit score is a number that reflects how well you’ve handled debt in the past. It’s like a report card for your financial habits. It is used by lenders, including mortgage lenders, to assess how likely someone is to repay their debt on time. The score is based on several key factors in an individual’s credit report, such as the amount of debt, payment history, length of credit history, types of credit used, and recent inquiries for new credit.
The most commonly used credit scores in the U.S. are FICO® scores, which range from 300 to 850. Here’s how they generally break down:
-
Excellent (780-850): Borrowers with excellent credit are likely to be offered the best interest rates and terms.
-
Good (700-779): These borrowers are generally offered favorable mortgage terms.
-
Fair (660-699): Those with fair credit may still qualify for a mortgage, but they may face higher interest rates and less favorable terms.
-
Poor (620-659): Borrowers with poor credit may struggle to qualify for a mortgage or may face very high interest rates.
-
Very Poor (300-619): It is extremely difficult for individuals with very poor credit to qualify for a mortgage, and if they do, they will pay a much higher interest rate.
For detailed information on how your FICO® credit score is calculated, go to Common Factors Affecting My Credit Score.
How Credit Scores Impact Your Mortgage Approval
Mortgage lenders use credit scores to assess the risk of lending money to a borrower. A higher credit score indicates that the borrower has demonstrated an ability to manage debt responsibly, and as a result, they are less likely to default on the mortgage. Conversely, a lower credit score suggests that the borrower has a history of financial mismanagement, making them a higher-risk borrower.
The most significant ways in which credit scores influence mortgage eligibility are:
Loan Approval or Rejection
Lenders typically have minimum credit score requirements for different types of loans. For example, many conventional loans require a minimum score of 620. Some government-backed loans, like FHA loans, might accept lower scores (as low as 580) if you’re putting down a bigger down payment.
Down Payment Requirements
If your credit score isn’t so great, lenders might ask you to put down a larger down payment. The bigger the down payment, the less of a risk the lender takes on. So, if your score is on the lower end, they might want to see a 10% or 20% down payment instead of the typical 3% or 5% down.
What Kind of Loan You Can Get
Different types of loans have different credit score requirements. FHA loans are generally easier to qualify for, even with a lower credit score. Conventional loans, on the other hand, often have stricter requirements. A lower credit score might limit your options or force you into a loan with higher interest rates.
Interest Rates
This is a big one. Your credit score has a direct impact on the interest rate you’ll be offered. The higher your score, the lower your rate will likely be. A lower interest rate means you’ll pay less over the life of the loan. For example, someone with an excellent score of 780 might get an interest rate of 5.5%, while someone with a lower score of 650 might end up paying 6.5% or more. Over the term of a 30-year mortgage, that can mean tens of thousands of dollars more in interest.
How Credit Scores Affect Other Mortgage Terms
Your credit score doesn’t just impact your ability to get a mortgage — it also affects how much you’ll pay for it. Let’s take a look at some of the extra costs your credit score can influence.
Private Mortgage Insurance (PMI)
If you’re putting down less than 20% for a conventional loan, you’ll have to pay for private mortgage insurance (PMI). If your credit score is lower, PMI premiums may be higher, meaning more money out of your pocket every month.
Closing Costs
In some cases, borrowers with lower credit scores might face higher fees when closing on a mortgage. These could include higher origination fees or discount points. Essentially, you might pay more upfront if your credit isn’t in great shape.
Loan Terms
Lenders may be more likely to offer shorter loan terms (like 15 years instead of 30 years) to people with higher credit scores. A shorter term means higher monthly payments but lower overall costs (since you’ll pay less interest). If your credit score is lower, you might be stuck with a longer loan term, which means lower monthly payments, but more interest paid in the long run.
If you would like to learn how to improve your credit score, check out Ways to Improve My Credit Score.
Summary
Your credit score plays a huge role in the mortgage process. It affects whether you’ll get approved, what type of loan you can get, what your interest rate will be, and how much your mortgage will cost over time. The better your credit score, the better deal you’ll likely get. So, before you start house hunting, it’s a good idea to check your score and work on improving it if needed.
By keeping your payments on time, paying down debt, and monitoring your credit, you’ll be in a good position to secure a mortgage that works for you. Remember, the higher your score, the lower your costs — and who doesn’t want to save a little extra cash when buying a home?
Fixed vs Adjustable Rates
When purchasing a home or refinancing an existing mortgage, one of the most important decisions you'll make is choosing the type of mortgage that best suits your financial situation and long-term goals. Two of the most common options are fixed-rate mortgages and adjustable-rate mortgages (ARMs). Each has its own advantages and risks, and understanding the differences can help you make an informed decision. Let's highlight the key features as well as the pros and cons of each type.
Fixed-Rate Mortgages
A fixed-rate mortgage offers predictability and stability. With this type of loan, the interest rate remains constant throughout the life of the loan, which means your monthly principal and interest payments will never change.
Key Features
-
Interest Rate: Locked in at the time of loan origination and doesn’t change.
-
Loan Term: Common terms are 15, 20, or 30 years.
-
Monthly Payments: Principal and interest payments remain consistent over the life of the loan.
Pros
-
Easier to budget since payments don’t fluctuate.
-
Protection from rising interest rates.
-
Ideal for long-term homeowners.
Cons
-
Typically has a higher initial interest rate than ARMs.
-
Less flexibility if rates drop (unless you refinance).
Is a Fixed-Rate Mortgage Right For You?
A fixed-rate mortgage is the right choice if you need predictability in your monthly payment. Since your principal and interest amount stays consistent, it is easier to prepare your monthly budget. This type of mortgage also protects you from rising interest rates. You won't have to worry about what the mortgage market is doing since your rate will be locked in at the time of origination and will not change throughout the life of the loan. A fixed-rate mortgage is also best if you plan to stay in your home long-term. Long-term in the mortgage industry means at least 3 - 5 years.
Adjustable-Rate Mortgages
An adjustable-rate mortgage features a variable interest rate that can change periodically, typically in relation to a benchmark index like the LIBOR, SOFR, or the U.S. Treasury rate.
Key Features
-
Introductory Period: Offers a low fixed rate for an initial period (e.g., 5, 7, or 10 years).
-
Adjustment Period: After the introductory period, the rate adjusts periodically (e.g., annually).
-
Rate Caps: Limits on how much the rate can increase per adjustment and over the life of the loan.
Pros
-
Lower initial interest rates than fixed-rate mortgages.
-
Potential savings if interest rates stay low.
-
May be ideal for short-term homeowners.
Cons
-
Monthly payments can increase significantly after the initial period.
-
More difficult to budget due to potential rate changes.
-
Risk of higher long-term costs if rates rise.
Is an Adjustable-Rate Mortgage Right For You?
You should only take on an adjustable-rate mortgage if you are comfortable with some financial risk. Your interest rate is subject to movement in the market, so you could potentially be burdened with a high interest rate for an unknown period of time after your initial rate period ends. Even if you are comfortable taking on some financial risk, consider what you believe the market might do. If you believe interest rates will stay the same or drop, an adjustable-rate mortgage can be a good decision. Another reason you might decide to take on an adjustable-rate mortgage is if you expect to sell or refinance the home before the initial rate period ends. If this is your plan, you would never see any of the risk associated with an adjustable-rate mortgage.
Feature
Interest Rate
Initial Monthly Payment
Long-Term Cost Predictability
Best For
Risk Level
Fixed-Rate Mortgage
Constant
Higher
High
Long-term stability
Low
Adjustable-Rate Mortgage
Changes after initial period
Lower
Low (due to rate changes)
Short-term ownership or rate gamble
Higher due to potential rate hikes
Should I Pay Points?
When you're applying for a mortgage, one of the decisions you might face is whether or not to pay points, also known as discount points. Points are fees you pay upfront to reduce your mortgage interest rate, often called "buying down the rate." While it might sound like a smart way to save money, whether or not you should pay points depends on your financial situation, how long you plan to stay in the home, and the loan terms.
What are Discount Points?
Discount points are essentially a way to pay some of the interest on your loan upfront in exchange for a lower rate over the life of the loan. One point typically costs 1% of your loan amount. So, on a $300,000 loan, one point would equal $3,000. In return, your lender may reduce your interest rate by around 0.25% for each point you pay. The exact rate reduction can vary depending on the lender and market conditions.
Paying points creates a trade-off: you pay more now to potentially save more later. But whether that trade-off is worthwhile depends on your financial situation and how long you plan to stay in the home.
Why You Might Consider Paying Points
One of the main reasons borrowers choose to pay points is to reduce their monthly mortgage payments. A lower interest rate means less interest accrues on your loan, resulting in smaller monthly bills. Over time, this can add up to substantial savings.
Another benefit is the overall interest you’ll save over the life of the loan. If you plan to stay in your home for many years, the initial cost of the points can be offset—and often surpassed—by the long-term savings.
There can also be a potential tax benefit. In many cases, mortgage points are tax-deductible, particularly if the loan is for your primary residence. However, tax rules can be complex, and deductions vary based on your individual financial situation, so it’s best to consult a tax advisor before making assumptions.
Why You Might Skip Paying Points
The biggest drawback to paying points is the upfront cost. Closing on a home already involves significant expenses such as down payments, appraisal fees, and closing costs. Adding thousands of dollars for points can strain your budget or leave you with less cash on hand for emergencies, moving expenses, or home improvements.
Another consideration is how long you plan to own the home. If you sell or refinance the mortgage before reaching what’s called the break-even point, you won’t have saved enough from the lower monthly payments to make up for what you paid in points. In that case, you could end up losing money rather than saving it.
It's also worth considering whether that cash could be better used elsewhere. For example, putting it toward a larger down payment can reduce your loan amount, potentially lowering your interest costs in another way. Or, you might prefer to invest the money or keep it in savings for flexibility.
How to Find Your Break-Even Point
To decide whether paying points is worthwhile, it’s helpful to calculate the break-even point. This is the number of months it will take for the monthly savings from your lower interest rate to equal the amount you paid in points.
Here’s a simplified example: Suppose you’re borrowing $300,000. You can get a 7.0% rate with no points or a 6.75% rate by paying one point ($3,000). If the lower rate saves you $50 per month, it will take 60 months—five years—to recover your upfront cost. Staying longer than five years would result in net savings.
The Bottom Line
Whether or not to pay mortgage points is a personal decision based on your financial goals, available cash, and how long you expect to stay in the home. If you have the funds available and plan to stay in your home for many years, paying points could lead to significant savings. But if you're uncertain about your long-term plans or would rather keep your upfront costs low, skipping the points might be the smarter move.
Before you make a decision, ask your lender to provide a quote with and without points. This decision isn't just about what you can afford now—it's about what makes the most sense over time.
Comparing Rates: How to Shop Interest Rates
Many home buyers believe they need to shop multiple lenders for the best rates. With so many different industry fees charged and forms used, it can be hard to determine which lender has the better deal. This section will give you a few tips to cut through the long list of itemized fees and industry jargon to easily see which lender has the best deal for you.
What Do Lenders Have Control Over?
First, lenders only have control over two things: the interest rate and the fees they charge. Mortgage quote forms and loan estimates will detail all of the various charges including the lender fees, title and closing fees, state and local transfer taxes, plus escrows and prepaids for things like your taxes, insurance, and homeowners’ association dues.
Second, all items other than the lender’s fees will be the exact same at closing, no matter which lender you ultimately choose. This is because the lender doesn’t control any of those other items and depending on when you receive your estimate/quote, those items may not even be known yet. For example, one lender’s estimate of title fees may be more accurate than the others but that doesn’t automatically mean it’s the best offer. Ultimately, you will end up closing with the title company or attorney selected by you and your Realtor®. Also, no one involved in your transaction can affect the other items such as county recording, transfer and/or real estate taxes. Therefore, all of the items other than the lender’s actual fees will be the same no matter which lender you choose.
Another important thing to understand based on the two points made above is you can’t determine which lender has the best offer by looking solely at the total costs or even the lenders loan estimate of your bottom-line cash due at closing. These numbers can be swayed if a lender estimates the items outside of their control too high or too low. Cash to close is an important number to consider when purchasing a home, but not the best metric to compare offers from competing lenders.
What Should I Look For to Compare Offers?
After you understand those key points, now it's time to compare offers. Assuming that the rates offered are for the same terms and rate lock period, you really just need to look at 1) the rate offered, 2) the total fees listed in Section A and B of the loan estimate and 3) any lender credit provided to offset those costs. Any lender credit offered will offset some or all of the fees listed in Section A, so subtract the lender credit from the fees charged, and you can come up with a net cost after applying any lender credit listed on your estimate. If the lender credit exceeds the fees listed in Section A and B, that remaining credit would apply towards the other typical closing costs such as title insurance, closing fees, etc.
Its really that simple. Lenders are required to disclose to you a wide variety of fees associated with your transaction, but in reality, we only control the rate and the fees we directly charge for your loan. So don’t make the mistake of just looking at the totals or your bottom-line cash to close. Focus in on the rate and those fees listed in section A and B along with any lender credit offered and that will help you choose the best offer.
-min_edited.jpg)