+1 vote
For a fixed 30 year mortgage- Rates are shown as of today 3.75% -  PNC says they are going with the national rates they say and its 4.25% we are checking daily to see if it can be lowered with them - it was 4.125 a few weeks ago. But why is that (4.25%) the lowest they can go? if the national average is lower? That makes no sense. We are putting 20% down and we have good credit 710.
asked Dec 6, 2017 in Buying a Home by anonymous

2 Answers

+1 vote
Hi, and thanks for writing. We can absolutely help you with this.

Many factors go into setting a mortgage interest rate. You won't pay the same rate at different mortgage lenders. And different people might get different rates even with the same lender. Just because Freddie Mac says the national average rates are "X" doesn't mean a lender has to offer "X."

See The 10 factors that go into your mortgage rate (and what to do about them) https://themortgagereports.com/31188/how-the-economy-affects-your-mortgage-rate-and-what-to-do-about-it

Lenders may adjust what they charge to control their pipeline. If more loans are coming in than they can process, they might raise rates to slow the tide. If applications slow down, a lender may reduce rates to below market to load its pipeline again. So the reason a specific lender is not giving you the interest rate you want is not the real question.

The real question here is why you are set on using PNC when you can see that other lenders are offering better deals. You have a couple of options. Contact several competing lenders, give them all the same information that PNC has, and see what they offer.

It's easy to get several offers from competing lenders here: https://themortgagereports.com/ratequote

You can choose to work with that lender (who probably deserves your business), or you can try to get PNC to match that offer, if you're already approved and ready to go. They may become more generous if they see that you are not a "captive" borrower.
answered Dec 6, 2017 by GinaPogol (47,650 points)
0 votes
There are LLPA. Loan Level Pricing Adjustments.  These are pricing hits. If the daily mortgage interest rates nationally is 4%, that is the barometer. There can be pricing hits on the following:
1. Credit Scores
2. Loan To Value on Conventional Loans
3. Manual Underwriting
4. Type of Property
5. Debt To Income Ratio (Higher DTI)
6. Cash  Out Refinance

All the above factors can add to interest rates

Gustan Cho NMLS 873293
Branch Manager
The Gustan Cho Team at USA MORTGAGE
answered Feb 6, 2018 by GustanCho (106,540 points)

Welcome to The Mortgage Reports Q&A Forum. Have your questions answered by experienced mortgage and real estate professionals.
515 questions
662 answers
883 users