It was very easy in the olden days to acquire a loan since it only required one to issue a term and the amount. Without a lot of questions. It just happened. It certainly made interest rate comparison much easier.  But in today's mortgage lending world, it's just not that easy.


In fact, say you've got two customers buying identical homes in a development. Each customer can be quoted completely different interest rates for different reasons. Despite them having similar credit score ratings. This is majorly possible because of being assessed with different cost additions and being given different discounts. Grab more information at


Taking different types of loans may also be a major factor driving this, one client may pick a Federal Housing Administration loan while the other may take a conventional loan. A lender has no additions or discounts added to it if the FHA loan has a credit score of 620. However, when one has that has a credit score of below 620, the pricing differential will be bigger. The higher ones credit score, the higher the discounts that one gets when using a conventional loan. A client with 720 credit score, has a higher discount than the one with a credit score of 620.  Nowadays, a lender has to understand how to read a chart in order to be able to place a conventional loan quote.


How big or small a loan is may cause a interest rate differentials. Those with big loans are able to acquire higher discounts than those having smaller loans. However, if you're financing a smaller amount, it may cost you a bit. 


Another big difference in interest rates available is the buyer's intention for the property.   If it's a primary residence or a second home, one gets a better rate than if it's an investment property.   It is often very unlikely for an individual to stop paying for a personal use property from an underwriters  perspective.


As touched on before, the type of loan matters, too.  There is a difference in the various types of rates available; that is the rural housing rates, conventional rates, VA rates among others.  Despite the fact that the two people may be buying the same house. Of course, you can't get a VA loan if you're not a veteran or the spouse of one buying a loan. And you can't get a rural housing loan if you're in the wrong zip code and make too much money. This means that for most of us, they choices are always limited.


It is important to understand that even when the VA interest rates are the same the payments may be different. For instance if one is required to have a mortgage insurance, the premiums paid monthly may differ.



I guess the best advice is to be patient when considering loan programs and payments. It is important to first explore all options available.