Everybody wants the lowest rate they can get, and that makes sense. Most of the time. Depending on closing cost amount, it might not make sense when you plan to have the mortgage for a short period of time.
Lenders advertise low rate all the time. And some people can get them. But not all.
In other words, interest rates, all interest rates not just the ones lenders advertise, must be put into a context before they can be compared.
Because lenders’ ideas of what is risky are not the same. A lender might think that the risk a first-time home buyer represents is compensated by adding 0.125% to the rate while another one by adding 0.250%. … More