Loans By Kathy: Advice for home buyers, it's not all about the rate!

Advice for home buyers, it's not all about the rate!

Kathy Sheehan

This advice for home buyers, it's not all about the rate!!!  I have had the same conversation three times today with first time home buyers.  In each conversation, I was asked the same question, "which program has the lowest interest rate?"  In today's mortgage market, it isn't all about the rate.  It is about which program is the right fit for that buyer.  

"What's the rate?" It is one of those questions that doesn't have a simple answer.  There are too many variables that will impact the interest rate available for the client.  Let's take a look at the areas that will impact the interest rate:

  1. Credit score - an adjustment will be made to your interest rate - the lower your score, the higher the rate
  2. Type of occupancy - Is it for a primary residence, second home or investment property?
  3. Down Payment - the requirements for each will also depend on the program.
  4. Loan size - an adjustment may be made depending on the program.
  5. Closing Date - Are you closing in 30 days?  If you are looking at an extended lock, the rate may also be slightly higher.

Clearly from the list you can see it is not a one size fits all interest rate.  My recommendation is to select the right financing program for you!


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Kathy Sheehan Senior Loan Officer






Bay Equity LLC

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11475 Great Oaks Way, Suite 350, Alpharetta, GA 30002

800.BAY.3703 Bay Equity LLC NMLS ID#76988



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The opinions and general information in this blog are soley those of Kathy Sheehan.  Specifics regarding an individual case should be discussed in detail with a loan professional.  For a confidential consultation, please feel free to contact me via phone or email.  All terms and conditions are subject to change.


Comment balloon 7 commentsKathy Sheehan • September 19 2013 07:49PM


The answer is not simple Kathy, but most do not realize this. the public just sees the interest rates posted and assumes that they are all the same loan.

Posted by Tom Arstingstall, General Contractor, Dry Rot, Water Damage Sacramento, El Dorado County - (916) 765-5366, General Contractor, Dry Rot and Water Damage (Dry Rot and Water Damage Mobile - 916-765-5366) almost 6 years ago

Kathy,  I love the education you provide for your readers.  Great post!

Posted by Sharon Parisi, Dallas Homes (United Real Estate Dallas ) almost 6 years ago

I hope you weren't feeling like a broken record when you were talking to the buyers today.  It's never easy trying to learn 'em . . . :-)

Posted by Carla Muss-Jacobs, RETIRED (RETIRED / State License is Inactive) almost 6 years ago

Hi Kathy - I'm sure this is a common conversation especially with first time homebuyers.   This post would make a great handout or a tab on your website for easy reference -- although I'm sure you'd still get the question - what program has the best interest rate.   

Posted by Michael Jacobs, Los Angeles Pasadena 818.516.4393 almost 6 years ago

So many people in the lending industry market a low rate without ever explaining how someone can obtain that rate, so people do not understand.  There are so many things that go into the interest rate like you mentioned, and that doesn't even include the type of loan a buyer might be looking at as far as fixed or variable rate, and 30 or 15 year.

When you try to explain these things consumers don't really care... They just want to know what is the lowest rate.

Posted by Troy Erickson AZ Realtor (602) 295-6807, Your Chandler, Ahwatukee, and East Valley Realtor (Good Company Real Estate almost 6 years ago

Hello Kathy,

Great information as so many do not know how their rate is derived until they understand these variables.

Posted by Lisa Von Domek, ....Experience Isn't Expensive.... It's Priceless! (Lisa Von Domek Team) almost 6 years ago
Thank, Kathy. Most buyers do not understand the mechanics of mortgage loans so they really need the information in your post. Good job.
Posted by Mary Yonkers, Erie/PA Real Estate Instructor (Alan Kells School of Real Estate/Howard Hanna Real Estate) almost 6 years ago