Don't Bank on Getting The Lowest Mortgage Rate
✉️ Want to forward this article? Click here.
In these times of historically low mortgage rates, it is not uncommon to see advertisements for rates below 4 percent. However, actually getting that low rate is easier said than done.
The Wall Street Journal reports today that the “gap between the lowest advertised mortgage rate and the average rate that borrowers actually get is as high as it has been in two years,” with advertised rates as low as 3.75 percent versus average rates of 4.39 percent. The number of borrowers who end up getting the 3.75 percent mortgage is quite low, and it is not because of issues like poor credit scores.
From the WSJ:
It is more reflective of changes in the way lenders approach their business. Lenders have raised their profit margins by 1.5 to 2 percentage points in the past month, according to Informa Research Services, by offering borrowers slightly higher rates. Lenders say they haven’t lowered rates further because, simply, they don’t have to. The mortgage market is not the cut-throat business of years past. Most lenders are happy to make mortgages but not at any cost.
The idea that advertised rates are frequently too good to be true is nothing new, but if indeed there are 3.75 percent 30-year loans out there, who is getting them? Those with perfect credit history who are willing to pay points?
See other articles related to: mortgage rates, the wall street journal
This article originally published at https://dc.urbanturf.com/articles/blog/dont_bank_on_getting_the_lowest_mortgage_rate/4093.
Most Popular... This Week • Last 30 Days • Ever
A look at the closing costs that homebuyers pay at the closing table.... read »
3331 N Street NW sold in an off-market transaction on Thursday for nearly $12 million... read »
In this article, UrbanTurf will explore the considerations and steps involved in buyi... read »
The most expensive home to sell in the DC region in years closed on Halloween for an ... read »
Paradigm Development Company has plans in the works to build a 12-story, 110-unit con... read »
DC Real Estate Guides
Short guides to navigating the DC-area real estate market
We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Start browsing below!
First-Timer Primers
Intro guides for first-time home buyers
Unique Spaces
Awesome and unusual real estate from across the DC Metro