• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Sonoma County Mortgages

Contact Us About Mortgage Financing

All financing provided by New American Funding

(707) 217-4000 | Prequalify Now

Search Sonoma County Mortgages

  • Home
  • Purchase
    • How Much Down Payment To Buy A Home?
    • How Much Income You Need To Buy A Home
    • How Much Should I Save For Buying A Home?
      • How Rates Affect Payment
    • No PMI Mortgages
    • FHA Loans
    • Sonoma County Disaster Loans
    • Jumbo Loans
  • Refinance
    • Mortgage Rates
    • Does It Make Sense To Refinance?
      • Get Your Refi Paperwork In Order
    • How To Pay Off Your Loan Faster
    • How To Remove PMI
    • How Lenders Price & Quote Loans
  • Loan Programs
  • Payment Calculator
    • Mortgage Affordability Calculator
  • Blog
  • Videos
  • About SCM
  • About Scott Sheldon

Primary Sidebar

Sonoma County Mortgages is a part of New American Funding

New American Funding - NMLS #6606

Get Your Latest Rate Quote Now!

Who Has The Best Rates For A Sonoma County Home Loan?

April 22, 2013 by Scott Sheldon

Share on Facebook Share on Twitter Share on LinkedIn Share on Email

The answer is nobody. Not anyone lender has a monopoly on the market. Interest rates change on a daily basis. When you hear interest rates advertised on the radio or online or you hear that interest rates drop again the information is automatically outdated. Why is this? Very simple answer-mortgage rates are tied to mortgage bonds, more specifically mortgage-backed securities (MBS).

When you take out a home loan, you are in essence creating an investment vehicle for the investor, the timely payment of that interest you are paying for the benefit of having a mortgage loan. These investors buy and sell these mortgage-backed securities every day on Wall Street driving money in and out of the bond market, thus changing mortgage rates multiple times per day everyday. Because home loans/mortgages are bought and traded every day on Wall Street just like a stock in a company is, rates move continuously. In other words when you get an interest rate quote from a home mortgage lender, that quote is only good in real time in that very instant because of the fact if you don’t lock in at that particular time, the interest rate can and likely will change again.

How Changing Rates Affects The Whole Loan Picture

How this applies when comparing rates. You call up the first lender, and they offer you a 30 year fixed rate mortgage at 3.625% at no points. You decide to continue to shop to try to get something better, you call up second under and they offer you 3.5% at no points, second lender sounds better right? As soon as you hang up the phone with the first lender, by the time you get the answer of the second under, the first lender’s interest rate could easily have changed to 3.5% at no points, thus illustrating that finding the lowest rate is borderline impossible because everybody operates off of the same mortgage-backed securities market and everyone has access to the same rates, in real time and all directly or indirectly sell their loans to Fannie Mae or Freddie Mac.

*Mortgage Tip: there is no regulation or guideline that states a lender must give you the lowest possible interest rate. The higher the interest rate, the more the lender generates in terms of additional profits off the loan you’re taking out, pure and simple.

Obviously, mortgage companies are in business to run a profit, but a fair profit, not one that is to the detriment of a consumer, but are reasonable rate given the market and the consumer’s qualifying ability. If you’re looking for the best rates for a Sonoma County home loan, start today by getting a complimentary mortgage rate quote for your purchase or refinance loan.

Related Mortgage Advice from Scott Sheldon

  • Which Mortgage Company For My Home Loan?

    How to select the right mortgage company for competitive rates. Choosing the right mortgage company…

  • mortgage after loan modification
    Mortgage after loan modification? Here's how...

    One of the challenges many homeowners faced in the recession was financial hardships. Loan modifications…

  • Get A Mortgage Rate Quote

    If you are looking for a Sonoma County Mortgage, get a mortgage rate quote. Mortgage…

  • 6 things you need for a mortgage
    6 questions every lender will ask

    Like it or not when you apply for a mortgage you're going to go through…

Filed Under: Credit Score Questions and Answers, Purchase Mortgage Loans Questions and Answers, Refinance Loans Questions and Answers

Get Sonoma County Mortgages News and Updates in Your Inbox

Footer

SCM on Facebook

SonomaCountyMortgages.com

Connect on Facebook

SCM On Instagram

Follow Sonoma County Mortgages on Instagram

Follow on Instagram

SCM on Zillow

Zillow Reviews for Scott Sheldon, New American Funding

See Reviews on Zillow

Location & Contact

Sonoma County Mortgages and New American Funding are an Equal Opportunity Housing Lender

Scott Sheldon, Senior Loan Officer
NMLS ID# 287389
2455 Bennett Valley Road C107
Santa Rosa, CA 95405
1-707-217-4000
View SCM Map | Email Us!

Map of Sonoma County Mortgages New American Financing Office

View Map on Google

Copyright 2010–2023 SonomaCountyMortgages.com · About Us · Sonoma County Loans · Privacy Policy · Terms Of Use · Legal · Site Map

NMLS Consumer Access © New American Funding. All rights Reserved. NMLS ID#6606.
Corporate Office 14511 Myford Road, Suite 100, Tustin, CA 92780. We at New American Funding take great pride in our customer service and make it our number one priority. We encourage you to contact us for complaint resolution or any post-closing questions you may have regarding the servicing of your loan. We strive to have your experience with New American Funding a stellar one. In the rare case that our service did not meet your expectations, please call our customer care hotline at 1-800- 450-2010, ext. 7100 or you may contact us by email customerservice@nafinc.com. Please leave a detailed message and we will follow up with you no later than the end of the next business day. If you are using a screen reader or other auxiliary aid and are having problems using this website, please call 800-450-2010 Ext. 7100 for assistance.

State Licensing (Opens in New Window) | Privacy (Opens in New Window)
Terms of Use (Opens in New Window) | Electronic Consent Agreement (Opens in New Window)
Opens in new window Opens an external site Opens an external site in a new window