How Interest Rates Move
Have you ever wondered what makes mortgage rates go up and down? Watch this clip which explains the dynamic between bonds and mortgage rates – in simple terms. If you enjoyed this post, why not connect with me elsewhere? If you’re looking for a mortgage in the Atlanta area, you can visit my primary Peachtree City and Newnan mortgage lender website at www.wdarrellwalters.com. If you’re interested in Free Business Boosters for Real Estate, visit www.freebusinessboosters.com....
Read MoreRates Have Hit All-Time Low Levels Again
CNBC and Bankrate.com just reported that home loan rates are at their all time lows. Yes, all time lows! This is great news for anyone who has yet to refinance to take advantage of the lowest rates ever recorded, or to purchase that new home or investment property more affordably than ever before. Both 30 Year and 15 Year Fixed Rates clipped down to their lowest levels. All this is incredible as just months ago, many experts had anticipated that rates would be well above 5% this summer and on their way to 6% by year end. Last month, NBC reported that nearly 50% of all people with a 30 Year...
Read MoreWhat’s Your Rate?
When it comes to buying a home, consumers can no longer shop for a mortgage based simply on lowest interest rate quotes. Today’s home buyer needs good advice from an experienced, educated mortgage professional who has the consumer’s best interest in mind. For consumers, this means beware of anyone who quotes you an interest rate over the phone or the Internet without asking anything about you, your family, your finances or your lifestyle. Besides market conditions, your mortgage rate is based on a long list of criteria that are unique to your individual financial situation. Look...
Read MoreTop Five Market Factors That Influence Mortgage Rates
Timing the market for the best possible opportunity to lock a mortgage rate on a new loan is certainly a challenge, even for the professionals. While there are several generic interest rate trend indicators online, the difference between what’s advertised and actually attainable can be influenced at any given moment by at least 50 different variables in the market, and with each individual loan approval scenario. Outside of the borrower’s control, the mortgage rate marketplace is a dynamic, volatile, living and breathing animal. Lenders set their rates every day based on the...
Read MoreWhat’s The Difference Between Interest Rate and Annual Percentage Rate (APR)?
The difference between APR and actual note rate is very confusing, especially for First-Time Home Buyers who haven’t been through the entire closing process before. When shopping for a new mortgage loan, you may notice an Annual Percentage Rate (APR) advertised next to the note rate. The inclusion of an APR is actually mandated by federal law in order to help give borrowers a standard rule of measurement for comparing the total cost of each loan. The APR is designed to represent the “true cost of a loan” to the borrower, expressed in the form of a yearly rate to prevent...
Read MoreHow Are Mortgage Rates Determined?
Many people believe that interest rates are simply set by lenders, but the reality is that mortgage rates are largely determined by what is known as the Secondary Market. The secondary market is comprised of investors who buy the loans made by banks, brokers, lenders, etc. and then either hold them for their earnings, or bundle them and sell them to other investors. When the secondary market sells the bundles of mortgages, there are end investors who are willing to pay a certain price for those loans. That market price of those Mortgage Backed Securities (MBS) is what impacts mortgage...
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