When shopping for a mortgage and reviewing interest rates on the internet, please be very careful. Be aware that lenders make assumptions when publishing an interest rate on-line.
There are many factors when quoting mortgage interest rates. Some of the factors are: the loan program, the term of the loan, your exact mortgage credit scores, the down payment amount, and if you want to pay points. There are several on-line lenders who publish a much lower rate but when you look at the assumptions, you might not be able to get that exact interest rate. For example, the assumptions might be having a 720 or greater credit score, putting 25% down, and paying 2 points to get that interest rate. Points are a fee to buy down the interest rate which if the lender is charging 2 point, that is 2% of the loan amount in a fee to get that interest rate.
– Clay Bohannan, ELG Loans