Answers
Rates, Points & Rate Locks
How pricing really works, when to lock, and whether points are worth it.
Rates are the most-watched and least-understood part of a mortgage. Here is how pricing actually behaves.
Common questions
What determines my interest rate?
Your rate reflects both the market and your file — your credit, down payment, loan type, property and term all move it. Two borrowers on the same day can be quoted different rates for good reasons. That is why a personalized quote beats an advertised one.
Should I pay points to lower my rate?
Points are prepaid interest that buy a lower rate. They pay off only if you keep the loan past the break-even point. If you may move or refinance soon, keep your cash; if you will hold the loan for years, points can be worth it. It is a math question, not a philosophy.
What is a rate lock and when should I lock?
A lock holds your rate for a set period while your loan closes, protecting you from market moves. The right time to lock depends on your timeline and your tolerance for risk — we will give you a straight read rather than a guess dressed up as advice.
Can my rate change after I lock it?
A lock generally holds your rate as long as your loan details and timeline stay within the lock terms. Changes to your loan amount, credit, or a long delay can affect it. Keep your file stable and your lock holds.
Why is the APR different from the interest rate?
The interest rate is the cost of borrowing the principal; the APR folds in certain fees to express a broader annual cost. Comparing APRs can help you weigh two offers, but read what each includes, because they are not always calculated identically.
Are advertised rates real?
They are real for a specific, often ideal, borrower on a specific day with specific assumptions — frequently including points. Your rate is the one quoted to your file. Treat advertised rates as a starting point, not a promise.