Get The Best Interest Rate

Everybody Wants the Lowest Interest Rate

So you want to know how to get the best interest rate? It’s not as easy as calling a broker and just asking, “What’s your best rate?” More than likely, with that approach, the question is going to be swept aside momentarily or the loan officer will just tell you what you want to hear. If rates are low, they will say LOW, if rates are high, they will say LOW. Their interest is taking an application and hopefully getting your business. Always remember the loan officer or broker you are speaking with WANTS your business. They know you can go anywhere to get a mortgage loan.

Here are some basic steps to get a low interest rate on your mortgage:

Inform your loan officer you are looking at several options. This will encourage them to quote competitively.

Do not sound desperate, overly-excited, or in a rush to get the loan closed quickly. A seasoned loan officer will identify you as an easy target to pass an unfair rate rate onto you. While the majority of brokers and loan officers do not operate in that fashion, unfortunately those types of folks are out there.

After your loan officer quotes your rate, ask him/her this: “How high is that rate over par?” This will likely stop them in their tracks and it will take a moment for them to speak up. A par rate is a wholesale rate offered by a lender to the broker. The broker adds incremental rate increases over this “par” rate to generate what is called yield spread premium, commonly referred to as YSP. Yield Spread Premium is a source of commission in the loan transaction paid to the broker or loan officer.

Finally, always remember that the rate you are being quoted is not final until that rate is locked. The locked rate is assurance and a “guarantee” from the lender that you will get that interest rate on a certain day for any number of days. Rate locks can range from 5 days to 60 days and beyond.

These tips are meant to help potential borrowers get the fair rate they qualify for. If you want to know where wholesale rates are TODAY, and don't want to go through the hassle of negotiating rates and fees, get the best result the first time by contacting a UtahMortgageNetwork approved broker. For borrowers seeking the lowest interest rates in other states, visit www.BeatMyBroker.com