It’s nearly impossible to quote today’s current mortgage rate for a California FHA, VA, USDA, or a conventional home loan because interest rates can change multiple times throughout the day. I’ve even seen mortgage rates reprice up to 5 times in one day!
That is why I protect my clients with Rate Alert! It gives me real time tracking of the mortgage backed security bond market to see if rates are trending up or down. If rates are trending up, we can lock before the mortgage bank can adjust the rate or pricing. If trending down, we know to float the rate and wait for the mortgage bank to adjust rates/pricing lower.
Comparing mortgage rates can be even more difficult than trying to understand where rates come from. The two biggest challenges when comparing mortgage rates are:
- Making sure you compare apples to apples and the lender knows ALL the details needed to account for the Loan Level Price Adjustments (LLPA’s). Why? Because LLPA’s may be the reason you will not qualify for the lowest interest rate.
- Getting accurate or real time quotes. Information you see online, in ads, or hear on the radio are often 1-3 days or even weeks old! The sole purpose of advertisers is to bait you into calling them, right? Most rates you see advertized often neglect to mention the rate is for a short fixed period (3, 5, 7 years) or they quote 10-15 year fixed rate loan programs which have lower rates than a 30 year fixed program.
To find out what interest rates are today…..pick up the phone and give me a quick call (951) 215-6119.
Click on this link to read and learn more exciting stuff about mortgage rates. (warning: it may put you to sleep)
MUST SEE VIDEO – Where do mortgage rates come from? (hint: not from the stork)