Interest Lock Mortgage Rate when you shop for a loan, the rate and terms you are quoted represent those available that day. The rate quoted probably won’t be available next month or next week. Therefore, you should only rely on the rate and terms a lender is willing to lock-in. A lock-in, or rate lock commitment, is a lender’s promise to close your loan at a certain interest rate and number of points. Read the rest of this entry »

The APR, often referred to as the Effective Rate, is a rate which shows the true cost of borrowing. This rate is different from the nominal (named or note) interest rate stated in your loan documents. The Truth In Lending Simplification and Reform Act requires mortgage companies to disclose the APR when advertising a rate. Read the rest of this entry »

For the purpose of this tutorial-article I will not get into the wholesale pricing and markup of retail money. However, I do believe that you should take a brief look at a rate sheet that most loan officers are looking at when they quote you a rate. Keep in mind that these rates do not include adjustments for cash out, loan to value, product type or documentation type. Read the rest of this entry »