What determines a rate?
Interest rates fluctuate throughout the day, every day. They can vary based on each particular loan scenario.
We quote rates based on 3 main qualifying factors.
Although rates are contingent upon the information above, they are also impacted by whether the loan is a purchase or refinance, and the loan to value. For example, the rate may be higher for 100% financing on a cashout refinance rather than 90% financing.
Rates fluctuate throughout each day based on the market. So even if you have an excellent credit score which would mean you could qualify for a lower rate – no matter how good your credit may be, or how much income you bring in each month, or how little debt you have – sometimes we have no control over how low a rate we can offer. A big part of rates are simply dependent upon the market.
What are points?
You can purchase points to basically buy yourself a lower rate. This makes sense in certain situations, but it’s not a good idea for everyone. We always quote what is called PAR rates to start – meaning the base rate with no buy down points. PAR is what the market has released that day, combined with your credit, income and debt.