How Do I Get The Best Rate?  It is never about the best rate.  It is about the best MATH, period.  There is NO other answer than that.  So why isn't the lowest rate the best deal?  First, lower rates come with more points and fees.  That is not the real issue, however.  There is a break-even point to contend with when paying loan points and other lending fees as well as possible tax deductions to consider when making a prudent financial decision regarding loan costs.  In the case of a purchase loan, points are tax deductible in the year that you pay them.  That is good, but then again, so is the interest you think you are saving.  With refinances, the points are usually only deductible only over the full term of the loan.  That could be 30 years, making the benefits and the break even point years down the road.  So why do lenders advertise really low rates with all of those points and fees?  Because they know most consumers look at the rate, not the math.  That advertising strategy works really well.  We don't play that game.  How about the lowest APR?  The more fees you pay, the lower the APR.  True, but not the answer.  We take apart each rate and fee quote to find out what the best MATH is, period.  It only takes a few seconds for a professional to do it for you using a computer.  After that, it's your decision.
 
What Causes Mortgage Rates To Change?  Did you know that one or more rate changes per day is normal?  Actually, it is unusual not to have a least one rate change in a day.  Most people do not know that.  Rate quotes can change when you call back later that same day.  In our business, a rate change also includes a change in the point cost for the same rate.  In other words, a rate can be no points in the morning, then later that day cost 1/4 point.  That is a rate change.  Did you also know that mortgage rates are not directly affected by what Ben Bernanke does?  Many times a fed rate cut can cause mortgage rates to go up.  Mortgage rates change primarily based on:  1) the perception of inflation, 2) times of uncertainty and 3) the movement of money in and out of the stock market--that's it.  When a piece of economic data shows weakness or uncertainty in the economy, rates tend to fall.  The opposite is also true.  A drop in the unemployment rate, a rise is durable goods orders, a rise in the consumer confidence index--rates go up.  Influencing factors can present themselves at any time, affecting mortgage rates instantly.  There is no "delay".  It doesn't take time to "filter down".  Reading the paper for quotes doesn't work because the information is old by the time it gets in front of your face.  Radio, TV and billboards are not the answer because the details are always missing.  Competitive lenders, us included, can deliver nearly identical rates to each other.   Most borrowers don't ask the right questions and focus only on the rate (see the top paragraph).  Think MATH and as it pertains to you.  That's all that matters.
 
The Bottom Line  Even though Skyline Funding is also a direct lender, many of our broker relationships often produce better deals for the consumer. The bottom line is that there is no one source that is the cheapest.  If one lender was always the cheapest, everyone would know about it eventually, right?  The only other way most lenders can compete with one another is to somehow convince the public that they have some "secret way" of providing lower than market rates.  The market is the market and you pay for it one way or another.
 
Only work with a professional mortgage company where the loan officers are skilled at the mathematics and can explain it in plain English. Ask for meaningful references such as CPA's or Realtors, not just past customers.  Don't gamble with something as important as your mortgage.