The Mortgage Files

Nationally syndicated mortgage news and advice from Senior Loan Officer Scott Sheldon.

Chart showing mortgage rates with points and the impact on pricing in high-interest rate environments.

How mortgage rate pricing works when rates decline

By Scott Sheldon / October 9, 2024

When interest rates are high, here’s how mortgage pricing works. Mortgage companies make money in two ways: the origination of the loan and the servicing of the loan, which involves collecting your monthly mortgage payments. When interest rates are higher, say around 7%, mortgage aggregators assess the value of that mortgage. They think, “If rates…

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