How Mortgage Rates are Determined

   
   
 

Compare Loan Rates

Lenders determine current mortgage rates by adding points to wholesale mortgage rate pricing, as shown below. Typically, between one and two points are added to the price column, with 100 being the even par price. One point is equal to one percent of the loan amount. For example, the 30 year fixed mortgage rate of 3.875% may cost about 1.5 points, or a rate of 4.25% could be zero points.

 
Example Wholesale Rate Sheet
5 Year ARM Rates

 

30 Year Fixed Rates

Rate

Price

 

Rate

Price

2.750%

100.292

 

3.875%

100.428

2.875%

101.036

 

4.000%

101.071

3.000%

101.075

 

4.125%

101.563

3.125%

101.075

 

4.250%

102.187

3.250%

101.075

 

4.375%

103.136

 

 

 

 

 

 

 

 

5 Year ARM Interest Only

 

15 Year Fixed Rates

Rate

Price

 

Rate

Price

2.750%

100.059

 

3.000%

99.606

2.875%

100.559

 

3.125%

99.972

3.000%

100.825

 

3.250%

101.142

3.125%

100.825

 

3.375%

101.778

3.250%

100.825

 

3.500%

102.125

 

 

 

 

 

 
30 Year FHA Rates

 

30 Year FHA Jumbo Rates

Rate

Price

 

Rate

Price

3.750%

100.559

 

3.750%

99.020

3.875%

101.004

 

3.875%

99.590

4.000%

101.836

 

4.000%

100.140

4.125%

101.841

 

4.125%

100.519

4.250%

103.888

 

4.250%

102.537

 

 

 

 

 

 

 

 

 

 

30 Year Fixed Jumbo Rates

 

5 Year Jumbo ARM Rates

Rate

Price

 

Rate

Price

4.250%

97.527

 

2.875%

98.542

4.375%

98.230

 

3.000%

98.964

4.500%

98.870

 

3.125%

99.370

4.625%

99.449

 

3.250%

99.745

4.750%

99.964

 

3.375%

100.089

4.875%

100.386

 

3.500%

100.464

5.000%

100.792

 

3.625%

100.823

5.125%

101.120

 

3.750%

101.105