Do all mortgage companies offer the same interest rate?

“Great team! They were extremely helpful in explaining our financing options. Always responded quickly to questions. The whole process of securing our mortgage was fast and painless.”
Michael Bonner
February 16, 2024
Do all mortgage companies offer the same interest rate?

TRUE or FALSE: There is "one rate" that all mortgage companies offer on any given day. 

Like many of our clients and partners, you may be surprised to learn that the answer is FALSE! After showing clients that interest rates can vary by as much as 0.375% between lenders for the same loan, many clients say to us: “I thought there was one rate for mortgages on any given day?”.  Most homebuyers know that fees could be different between lenders, but they often have no idea that the actual interest rates we have access to can vary as well.

If this is news to you, you're not alone!

While interacting with homebuyers, homeowners, and even industry professionals, we have learned that there is a great opportunity to provide education in this space. For one reason or another, most people tend to have some common misconceptions about the mortgage market & process. That's where we come in as a trusted mortgage guide! 

The truth is that rates WILL vary between mortgage lenders (as will fees, the personality of the loan originator, the speed at which they can close your loan, and the technology they have in place to provide a streamlined mortgage experience).  What remains consistent in all mortgage situations is this:  

Your choice in a mortgage lender will have a lasting impact on your finances.  

The few weeks it takes to complete a mortgage loan will result in a new debt payment - one which is determined based largely on the interest rate you select (in addition to loan term, loan amount and other factors).  When all else is equal - a higher interest rate means a higher payment for the same mortgage amount. So consider the long-term impact of a loan's rate - not just a perceived “ease” of a transaction in the short term.

If you are looking for some helpful hints to keep you sane as you wrangle the mortgage shopping process, here are two suggestions:

Don’t fall victim to technology

Ask yourself: Would you complete a paper application if it meant saving $50 to $100 every month for as long as you owned your home? If so, then don’t let an “app” guide you astray. Despite what certain companies want you to think, the mortgage process isn’t really that hard (and we operate on the belief that it can be downright easy!). Regardless of how you obtain your loan, you'll be left with a monthly mortgage payment for 120, 240 or 360 months. The mortgage process, itself, is a short-term inconvenience at most.   

Protect your personal contact information

If you have ever entered your phone number on a mortgage shopping site before, you likely received multiple phone calls every hour for days. Chances are you will NOT do that again. You deserve to explore your options with safety and privacy guaranteed... nobody wants their information to be sold! That's why our process starts with a no-pressure call directly to our CEO, Ben so you can get started without giving out any private information on an application before you're ready.

In closing, mortgage rates CAN & DO vary significantly between mortgage lenders for several reasons. When you explore rates with us, you'll get clear answers, unbiased guidance, and transparent mortgage options so you can make an informed decision. Schedule an introductory call today to get started!

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