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Rates are flat today. Today’s rates with no lender fees are 3.5% APR on a 30 year, 2.875% APR on a 15 year and 2.75% APR on a 10 year. (click here for details)

With lenders reaching pipeline capacity and having more business than they know what to do with, I have seen several announcements stating that they are either raising their fees or increasing their current pricing.
Check it out in today’s video:

When a lender has too much business they can slow it down by increasing their pricing and actually take larger profits on the loans they do get.
This is obviously a business decision and there is nothing wrong with that. It’s a free world. However, this can make your search for that best possible deal just a little more difficult.
Last week I saw an announcement that stated a specific investor would be raising their margins by 75 basis points (bps) on the FHA streamline loan program. YIKES!
Let’s put that into a number that you can relate to. 75 bps on a $250,000 loan amount is $1,875.00 in additional profit to that investor. That is not chump change.
And Of course this affects the rate and cost associated with your specific loan. These changes also usually happen with very little notice.
So if you would happen to see rates and costs get worse from the lenders you are getting quotes from it doesn’t always mean the rates got worse. It can very well mean that some investors have decide to make higher profits. Keep that in mind when you are shopping around.
If you thought this was good information or worth discussing, help me bring transparency to mortgage lending by sharing today’s episode on Facebook or Twitter.
Let’s change the way people shop for a mortgageā€¦forever!
– Mike
PS. To ask a question, get advice, or find out if you’re getting the best deal possible on your loan, just post a comment below.

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