“Bankrate.com lists 15 year fixed mortgage rates for today 2/6 at 4.95%. Why can’t I get that rate from

Deal Score0

a local loan company? They can only offer me 5.375% on a fixed 15-year mortgage.
I don’t understand, please help.

  1. Reply
    April 29, 2011 at 9:13 pm

    Unless you have a fixed-rate mortgage, the current mortgage interest rates are very important to deciding how much you should pay every monthcompanies offer different interest rates so it is a good idea to shop around for the best deal before settling on one particular lender.

  2. Reply
    Dr J
    April 29, 2011 at 9:38 pm

    The 4.95% is the APY rate offered by larger banks to borrowers with near perfect credit. APY means the interest rate without figuring in all of their fees. With fees added in, your true rate, APR, may be closer to 5.3%. Some companies, such as Countrywide, claim to have no upfront costs, thus lowering your APR to near the APY.

    Remember that the lower your credit score, the larger your risk and the higher your interest rate will be. What I’ve also found is that local banks tend to feel that they have you at a disadvantage and will charge more than larger banks.

    Doing an internet search for larger mortgage companies may help you to locate a lower rate.

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