by jimhaley | Apr 28, 2022 | All About Mortgages
How are Mortgage Rates Determined Key Concepts Mortgage rates are driven by investor demand Investors view mortgages as similar to bonds (lower risk, more stable return) Unpredictable consumer behavior makes mortgages more risky than “guaranteed” bonds like US... by jimhaley | Apr 28, 2022 | All About Mortgages
Key Concepts APR attempts to factor in upfront costs to deliver a true “cost of financing” which is typically higher than the interest rate on your mortgage APR relies on human input and variables that can be manipulated to a certain extent. Thus, it’s an imperfect... by jimhaley | Apr 28, 2022 | All About Mortgages
Key Concepts Mortgage rates are interest rates on home loans There are really TWO mortgage rates: the interest rate (or “note rate”) applied to your loan amount (or “principal”) and the rate implied by certain upfront costs (the “effective rate”). APR (Annual...