DAVE REYNOLDS
DRE License No. 01139545
NMLS License No. 243363

ALL VALLEY MORTGAGE
DRE License No. 01215998
NMLS License No. 244655

Mortgage Rates

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Mortgage Rates

Mortgage rates are more than just a number—they reflect the current state of the economy, your personal financial profile, and the structure of your loan. But looking at a rate in isolation can be misleading. The goal isn’t just to chase the lowest rate—it’s to understand what the rate actually means in terms of cost, flexibility, and long-term impact.

What Determines Your Rate?

Most people assume rates are fixed across the board. In reality, they’re shaped by several personal and market factors, including:

  • Credit Score – Higher scores typically mean lower rates, but the difference between 680 and 740 can change your monthly payment.

  • Loan Type – Government-backed loans (FHA, VA) may offer lower rates but come with added costs like mortgage insurance.

  • Down Payment – Putting 20% down doesn’t just avoid PMI—it often unlocks better pricing tiers.

  • Loan Term – 15-year loans usually have lower rates than 30-year ones, but come with higher monthly payments.

  • Debt-to-Income Ratio (DTI) – The lower your monthly obligations compared to your income, the better your rate.

Understanding how these factors interact allows you to prepare and potentially qualify for stronger pricing.

Fixed vs. Adjustable Rates: What’s the Real Cost?

A fixed-rate loan offers stability—your principal and interest never change. But in some cases, an adjustable-rate mortgage (ARM) can be a smart choice. For example, if you plan to sell or refinance within five to seven years, the lower initial rate of an ARM might save you thousands without the long-term risk.

The key isn’t guessing the future—it’s aligning your rate structure with your timeline and financial goals.

Rates Are Just One Layer

The mortgage industry often markets rates as the only number that matters. But here’s the truth: a rate with $5,000 in lender fees might not be a better deal than a slightly higher rate with no points or closing costs. That’s why we encourage borrowers to evaluate the Annual Percentage Rate (APR), total closing costs, and break-even timeline—not just the interest rate itself.

We also break down rate buydowns (paying points), par pricing (zero cost rates), and lender credits, so you can decide what’s worth it and what’s not, based on how long you expect to keep the loan.

Staying Ahead of the Market

Rates change daily—and sometimes multiple times a day. Rather than chasing headlines, we explain what’s driving rate movement (inflation, Fed policy, bond yields), and how to time a lock based on your situation—not someone else’s prediction.


Quick Insight:

A 0.25% difference in rate on a $500,000 loan can equal more than $30,000 in interest over the life of the loan.

The smartest borrowers aren’t the ones who “get the lowest rate”—they’re the ones who understand the full picture and choose the rate that aligns with their bigger goals.