Here is the one question I get more than any other by typical home buyers shopping for a mortgage:
What’s your mortgage rate?
I get that a lot from mortgage shoppers that are not familiar with the mortgage process. It’s sort of like walking into a shoe store and asking “how much for a pair of shoes?” For the shoe salesman, the answer would depend on factors like, style, size, material etc.
It works the same with mortgages. Rates depend on factors such as loan size, the loan to value (how much you are borrowing in relation to the selling price or home value), and of course your credit score.
If you see an ad with a low mortgage rate in nice large font, ask yourself this question. How do they know anything about the home I’m buying, the mortgage I’m looking for, or what my credit profile looks like? There is no “one size fits all” when it comes to mortgage rates (or shoes).
If you see a mortgage rate advertised on the internet that seems too good to be true, trust your instincts, steer clear and have a conversation with a reputable mortgage professional. That’s the one way to determine the only rate that you should really be interested in, and that’s the rate that you’ll be paying.