How mortgage rates work

Whether you’re looking to purchase your first home, a repeat buyer, or someone looking to take advantage of better loan terms through a refinance it’s important to understand how mortgage rates are determined for your unique situation. Everyday we speak with clients looking for answers about rates so we know how confusing and intimating it can be. That’s why we make it easy for you to find the best rates…

Our goal is to be 100% transparent, so once you have all the facts, you can make an informed decision on the best loan product, rate, and terms for your personal situation.

Daily Mortgage Rates for 12.1.21

30-Yr. Conventional



30 Day Range
2.5% - 3.363%

15-Yr. Conventional



30 Day Range
2.25% - 2.612%

30-Yr. FHA



30 Day Range
2.5% - 3.468%

30-Yr. VA



30 Day Range
2.25% - 3.127%

*Calculated from actual locked rates with consumers across more than one-third of all mortgage transactions closed nationwide

Ready to see your rate? Give us a call at 800-599-1563. Not ready right now? Schedule an appointment with a licensed mortgage professional, or submit a Quick Quote.

 What affects mortgage rates?

Conventional and government lenders set their rates based on the pricing of Mortgage-Backed Securities (MBS) which are traded, all day long, in real time.  Because of the effects of the political and economical events, mortgage rates and fees move throughout the day. Mortgage rates and pricing goes down when MBS pricing goes up, and vice versa. Some of these factors you can control and others you can’t, which is a big reason why rates change daily.

  • Economy – The global economy drives all interest rates, including mortgage rates
  • Income – Your debt-to-income ratio can affect your rate
  • Property location – Different state laws can change lender costs.
  • Home use – Primary or secondary residence, vacation home, or rental?
  • Property type – Single or multi-family, condo, mobile, etc.
  • Loan-to-value – Borrowing less (and putting more down) can get you a better rate
  • Credit score – Better credit means a better interest rate. Lower credit can mean a higher rate
  • Loan features – Term (30, 20 or 15), documentation type, adjustable rate, etc.
  • Points – Paying extra up front for “discount points” lowers your rate
  • Loan amount – Very high or very low loan amounts can mean higher rates

To get the advertised mortgage rate , you will have to have a low loan-to-value ratio, high income/low debt and perfect credit. Anything less and you will be subject to risk-based pricing, which means the rate you qualify for will reflect your risk level.

The best way to find out your rate is by getting a personal mortgage quick quote, based on your unique borrower profile, from a licensed mortgage advisor.

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Need help figuring out your options?

We’ve built tools to help you run the numbers on different scenarios, so that you can easily see a breakdown of monthly payments and down payments for different rates/terms. You can get started below…

Purchase Affordability Calculator

  • Purchase
  • Refinance

Annual Salary

Interest Rate

Loan Term

10 15 20 25 30

Monthly Debt

Property Taxes

Home Insurance

Maximum Monthly Payment (P&I Only)


Maximum Monthly Payment (Total Payment)


Max Mortgage Amount


Of course, we’re always here to help guide you. You can call now, schedule a call, text, or request a quick quote. Connect with a licensed mortgage advisor today to walk through your options and a get a custom mortgage based on your unique situation.