Mortgage interest rates are determined by a complex combination of factors, and can vary significantly depending on the borrower’s individual circumstances and the state of the economy

– When the economy is strong, interest rates tend to be higher, while in times of economic downturn or uncertainty, interest rates may be lower

– When inflation is high, interest rates tend to be higher to help offset the increased cost of borrowing

– Your credit score is a major factor that lenders consider when determining your interest rate. Borrowers with higher credit scores are generally offered lower interest rates, while those with lower scores may be offered higher rates

– The length of the mortgage term can also impact the interest rate. Typically, longer-term loans have higher interest rates than shorter-term loans

– Different types of mortgages, such as fixed-rate mortgages and adjustable-rate mortgages, may have different interest rates. Fixed-rate mortgages offer a set interest rate over the life of the loan, while adjustable-rate mortgages may have varying interest rates over time

– Lenders may also have different policies when it comes to setting interest rates. Some lenders may offer lower rates to borrowers with a larger down payment or to those who have a long-standing relationship with the lender.

A common practice among most banks and many lenders is to only provide one available interest rate. The single rate misrepresentation does not give consumers access to the entire market and in many cases it denies individuals the ability to make the best choice

At Loan Bliss, we take a different approach and offer the full range of available interest rates from the lowest to highest. Within that range there will either be a percentage of a discount point or a closing cost credit from the bank

As a general rule, the lower the interest rate the higher the cost to attain that rate and vice versa. Thus the lowest rate available can be quite expensive and as you examine the list of available rates, the cost diminishes and changes to an increasing credit for the remaining available rates

Most importantly the fees or credits that banks charge or provide vary considerably, so it is in your absolute best interest to compare rates, closing costs and the associated APR at any particular interest rate