CHAPTER 13
Finding the Best Interest Rate
Ah, the Holy Grail. After getting all your finances together, finding a home, finding a loan program, finding a lender, and finding a loan officer, it all boils down to this, doesn’t it? Knowing how rates are set, how they can move, and when they move can help you nail down a rock-bottom rate.
13.1 WHO SETS MORTGAGE RATES?
Lenders set interest rates every business morning as markets open. There are various indexes, but for fixed-rate mortgages they’re set to a mortgage bond and priced accordingly. A 30-year fixed-rate price will be tied to the current 30-year Fannie Mae coupon being traded that day. If ...
Get Mortgages 101, 3rd Edition now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
