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Routing # 307086691 | Wiring Instructions

Monday Messages

Your mortgage questions answered!

In our previous Monday Message, we discussed the housing market and projections for what to expect for home values in the future. The second major piece that our members are wondering about is regarding mortgage rates, costs for getting a home loan, and whether they should wait to buy until rates decrease. Here is what WyHy’s home loan professionals have to say on these topics!

The news is talking about interest rates climbing – what will happen next?

We all know that the pandemic changed a lot of things, and mortgage rates were no exception which means that the likelihood that we will see mortgage rates decrease to those from 2020-2021 is extremely unlikely. Additionally, the rate increases we have seen in the first half of 2022 are stabilizing the market and we are likely to see a more consistent mortgage rate trend in the second half of the year. Keep in mind that for every 0.25% increase in rate that equates to about a $15 monthly payment difference for every $100,000 of loan amount; therefore, although rates are important they are rarely the deciding factor in qualification for a home loan.

Why do advertised interest rates differ from lender to lender?

Rates are set by the secondary market meaning that all mortgage lenders start out on an equal playing field. From that even playing field lenders add costs to the rate (called points or discounts), and fees to process the loan. These costs can be categorized in many ways from lender to lender which leads to variation in what rate is advertised. The best way to compare the true cost of a rate with any lender is to have a loan estimate specific to you and compare the APR and interest rate from lender to lender. Schedule an appointment to talk with one of our home loan professionals today to help you compare rates and APRs from other lenders and choose the best home loan for you.

What is APR and why does it matter?

APR, Annual Percentage Rate, is the interest rate plus the cost of any points/discounts and fees that are charged by the lender to get the loan spread out over the term of the loan and is expressed by a percentage. By comparing APR to your interest rate you know what the cost of getting the loan is. Each lender sets up their fees and costs in slightly different ways, but no matter the setup, these costs are reflected in the APR.

By comparing APR from lender to lender you are not only finding the lowest interest rate but are also finding the lowest cost to get the loan, which reduces your out-of-pocket closing expense.

How do I qualify?

The first step is to speak with a WyHy home loan expert who will map out a plan to fit your unique financial goals, submit your application, and work with you all the way through closing.

Contact a WyHy home loan expert by:

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