There are many things to think about when you are considering a home mortgage. Â Of course you can check the internet or newspaper for the latest mortgage rates, but this can be misleading due to many outside factors.
Due to individual circumstances, these rates can vary from person to person. Also, posted mortgage rates can change multiple times throughout the day. This can leave people with many questions.Because of these variation, it is important to have a reliable, trustworthy lender.  According to www.myfhamortgageblog.com, here are a few questions you should ask your lender about mortgage rates before you apply for a mortgage loan:
- Who Determines Mortgage Rates?
- How can you monitor mortgage rates?
- How often do mortgage rates change?
There are several great subscription based services available to monitor Mortgage Bond pricing.
The key is to make sure the lender is aware they should be monitoring Mortgage Bond pricing, such as the Fannie Mae 30-Year 4.50% coupon… and not the 10-Year Treasury Note or the news media.
Mortgage rates may change throughout the day, however they only change on days when the Bond markets are trading securities since mortgage rates are based on Mortgage Bond prices.
Think of a Mortgage Bond’s sales price similar to that of a Stock that trades up and down during the course of a day.
For example – let’s assume the FNMA 30-Year 4.50% coupon is selling for $100.50. The price is 50 basis points lower from the previous day’s closing price of $101.00.
In simple terms, the borrower would have to pay an additional .50% of their loan amount to have the same rate today that they could have locked in the previous day.
Mortgage interest rates are determined by the pricing of Mortgage Backer Securities  or Mortgage Bonds. The media often implies mortgage rates are based off the 10-year Treasury Note, which is incorrect.
While the 10-year Treasury Note has been known to trend in the same direction as Mortgage Bonds, it is not unusual to see them move in completely opposite directions.
By keeping these questions in mind while  researching different mortgage loans and lenders, you will be much better prepared to receive the best mortgage rate available.  If you would like more information about interest rates there are more resources available to you at www. phoenix-az-mortgages.com.
