How is My Interest Rate Determined?

Guest Blogger Jeffrey Nunley co-writes this article with David Muti

Why did my friend get a lower Interest rate than I did?

As mortgage planners that work with clients from all walks of life, we are often asked "why did my friend get a lower rate?" In fact, I was just asked the question by a repeat client of mine last week. We always try and explain why this might be. The usual answer is that they are comparing apples to oranges. In that particular circumstance my client was mistaken about the type of mortgage her friend had and upon questioning she understood the difference. My Client (who just purchased her new home) was recently separated, had no job, never worked and could not prove her alimony as it was not yet part of a property settlement agreement. We were able to accomplish this using a "no documentation-jumbo" program. her friend was gainfully employed and was able to verify her earnings as well as her assets.

How your rate is determined is much more complex than the "type of mortgage you have.

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