Important - Loan quotes are subject to change without notice, and may be better or worse than the above quotes depending on loan amount, lock-in period, loan-to-value ratio, and credit profile. Also, rates/points will be higher for investment property.

If you want an immediate quote for a specific transaction, Request a Quote, or call Rob Hickerson of LouisvilleMortgage.com & Mortgage Professionals, Inc. at (502) 553-3212 or (877) 993-2328.

Contrary to popular belief, the Federal Reserve Bank does not set or control mortgage interest rates. That is why, occasionally, mortgage rates may be trending in the opposite direction of what you anticipate. The FED, through its open market committee, attempts to fine-tune the economy within a targeted range of growth and low inflation. The FED generally does this by changing the federal funds rate, which is the rate member banks charge for overnight borrowing within the Federal Reserve System. This action is what receives all the attention in the media. The FED's actions tend to establish a trend in rates and, for the most part, rates for other types of loans will react in tandem.

Lenders typically set mortgage rates at a spread of 1 1/2 - 2 points over the 10-year US Treasury Note or 30-yr Treasury Bond. Interest rates on Treasury Securities are established in daily trading activities by market participants around the world. Consequently, the yield on Treasuries, and, therefore mortgages, can fluctuate daily and often in the opposite direction of popular expectations. For example, the FED may have recently "lowered" rates (i.e., the FED funds rate) by 1/4 point. The next day, a report on employment or industrial production may indicate a strengthening economy which traders feel will increase the likelihood of future inflation. The result: long-term bond yields are traded higher to compensate long-term investors for higher "anticipated" inflation, and mortgage rates may actually go higher as well.

When you apply for a mortgage loan, Rob Hickerson of LouisvilleMortgage.com & Mortgage Professionals, Inc. will offer you the option to "lock-in", or guarantee, the rate and terms available that day. A lock-in means that you will be required to close at the negotiated terms and within a particular time-frame. If you do not lock-in, you are "floating", and rates may be either higher or lower when you do lock-in. Commitments for the terms of your loan are considered contracts and all parties to the agreement will be expected to honor their positions. Rob will gladly discuss the market with you. He can be reached at (502) 553-3212 or (877) 993-2328.

Rate quotes also come with or without points. Each point is 1% of the loan amount and is an up-front fee paid to Rob Hickerson of LouisvilleMortgage.com & Mortgage Professionals, Inc. that effectively lowers the note rate over the life of the loan. For example, on 30-year fixed-rate mortgages, each point usually discounts the rate 1/4%. Over the entire term of the loan, paying points to get a lower rate does save you money. However, the recapture, or break-even analysis of this results in more costly transaction in the early years of the loan. Therefore to pay points or not becomes a function of how long you expect to keep the loan before you either sell the property or refinance. Current tax laws favor the payment of up to 2-3 points by allowing same year deductions on tax returns. Points are often called discount points or origination fees.

Generally speaking, the rate on mortgages varies according to the length of time the rate is fixed and the credit risk parameters of the borrower.