Mortgage rates are priced with rebate, a credit towards closing cost, or discount points, an additional cost paid to reduce the interest rate (Note rate). The amount of the rebate or discount is based on a percentage of the loan amount. The difference in pricing (rebate or credit) varies throughout the day, just as mortgage interest rates change. In fact, it’s not so much that the mortgage rates change throughout the day, it’s actually the cost or credit associated with that rate.
Using Rebate Pricing to Reduce Closing Cost on your Refi or Home Purchase
August 21, 2011 by 6 Comments
Santa Ben and the FOMC Deliver Lower Rates
December 16, 2008 by Leave a Comment
Just in time for the holidays, the FOMC surprised everyone by cutting the Fed Funds 
rate to a range of zero to 0.25%. This 0.75-1.00 reduction is more than the widely anticipated 0.50% rate cut. The Fed also reduced the Discount Rate by 0.75% to 0.50%.
Bernanke and the FOMC didn’t stop with the giving there…they reiterated their commitment to buying mortgage backed securities which keeps mortgage interest rates low.
Is My Preapproval Still Valid with all the Rate Changes?
October 29, 2008 by Leave a Comment
My clients and readers ask such great questions…I just received this one from one of my clients that I’ve been working with since June of this year:
“…with all the rate changes how is our pre-approval looking? It the original amount still applicable?”
Rates on Bank Websites
October 23, 2008 by Leave a Comment
I received this email from a client yesterday. Since it’s a common question, I thought I’d share it with you:
“I just noticed on the [big bank’s] website that the conforming mortgage rate with 1 point is now 5.75.
Do you know what type of rate it would be for conforming jumbo without paying a point?
How much do you anticipate my closing costs will be if I decide to refinance? I know [big bank] has a new program now where they pay for all closing costs besides interim interest and taxes when you refinance. Do you know if any other banks offer the same program?”
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