| | | | Dear Reader, | Headlines will tell you where "mortgage rates" are, but they rarely tell you what you will pay at closing. Even with the 30-year fixed averaging 6.09% as of January 22, 2026 in a widely followed weekly mortgage-rate survey, two borrowers can see very different APRs, points, and fees on the same day. | With the Fed meeting January 27–28 on its official 2026 meeting calendar—and economists in a Reuters poll expecting no immediate move—many households will be most affected by something far more "invisible": the micro-pricing layer lenders apply loan by loan. |
| |
| | |
| | | | | | Why This Matters | Lenders price risk, not headlines. In plain terms, risk-based pricing means borrowers viewed as higher risk often get worse terms—sometimes through a higher rate, sometimes through points and add-ons that raise APR and cash-to-close. | That risk scorecard goes well beyond a single credit score number. The most common drivers include: | Credit tier (not just "good" vs. "bad," but which band you fall into) Down payment / loan-to-value (LTV) Debt-to-income (DTI) and reserves Term length and product type Occupancy (primary home vs. second home/investment) Cash-out vs. purchase and other features that change default risk
| For everyday investors and retirees, this is the difference between a loan that fits the budget and one that quietly drains it. |
| |
| | |
| | | | | Where Things Stand | On conventional mortgages, many of these adjustments flow through the government-sponsored enterprise pricing grids—most notably Fannie Mae's LLPA matrix—which shows how pricing changes based on combinations like credit score bands and LTV ranges. | Here's the practical point: even a "small" pricing adjustment matters. One discount point is 1% of the loan amount, so on a $400,000 mortgage, that's $4,000—real cash at closing, even before title, escrow, and insurance. | And with inflation still pressuring household budgets—December's CPI summary put prices up 2.7% year over year—fee creep is harder to shrug off. | What to do, specifically: | Compare Loan Estimates, not ad quotes—watch APR, points, lender credits, and total loan costs. Ask what's driving pricing in your file (credit band, LTV, DTI, occupancy, term), then shop that same profile with another lender. If you pay down debt, correct a credit report error, or increase your down payment, request a re-price before locking, because your risk bucket may improve.
|
| |
| | |
| | | | | The Patriot Perspective | Rates set the backdrop. Loan-level pricing determines what households actually pay at closing. The disciplined borrower wins by proving they're lower risk than the lender's first pass—and by forcing clean, apples-to-apples comparisons before signing. | Stay steady,
Kenneth Boyd
Author, Finance Writer, Former Investment Advisor & CPA |
| |
| | |
|
|
0 التعليقات:
إرسال تعليق