How does a lender determine your interest rate?

As a loan officer "what is your rate" is almost always the first question that is posed to me by a prospective client. My answer is the same every time "that depends on your situation". This answer never seems to satisfy the new prospective client but it is really the only honest way to answer the question. There are thousands of advertisements out there showing very low interest rates in big bold type with a lot of fine print. The fine print is important because those super low rates are always connected to non-traditional mortgages such as ARM's and the borrower must be considered 'ideal' in all areas. So, at the risk of exposing industry 'secrets', here is how your interest rate is determined.

Welcome to Open Mortgage's Lending in Los Angeles blog!

Thank you for taking the time to visit our new blog! We are looking forward to connecting with you. The purpose of this blog is to inform our readers with up to date news relating to real estate here in Southern California. We welcome everyone's comments and opinions on everything that we post. Your feedback will help us be more effective in our work as mortgage lenders. In return, this blog will offer a wealth of information regarding lending programs, real estate trends, community news and anything else that has the potential to educate and entertain.

Some of you may want to talk to us directly about qualifying for a loan to purchase a home, or refinancing your current mortgage, or maybe just to get some advice on your personal situation. Please feel free to contact us directly, we are here to help!

Open Mortgage - Gardena Branch
1225 W. 190th St. Suite 455F
Gardena, CA 90248

P: (310) 515-9993
F: (310) 878-4150