Why “What’s Your Rate?” Isn’t the Right Mortgage Question (And What You Should Ask Instead)
Why "What's Your Rate?" Isn't the Right Mortgage Question (And What You Should Ask Instead)
At SouthShore Region Mortgage Group, we hear it all the time:
"What's your rate?"
We get it - mortgages can feel overwhelming, and it's natural to want to simplify things. Most people are trained to compare prices like they would for airline tickets, hotel rooms, or car insurance. So, they assume comparing mortgage rates should be just as easy.
But here's the reality - mortgage rates are not one-size-fits-all.
As experienced professionals in this industry, we've seen how misleading it can be to rely on a single number. Without context, a quoted rate is often just a shiny teaser or a padded estimate - and rarely reflects your true scenario.
Why Simply Asking for a Rate Doesn't Work
Think of it like calling a car dealership and saying:
"How much is a car?"
They can’t give you an accurate answer unless they know the make, model, year, financing terms, and your credit history.
Mortgages work the same way. When you call and ask, "What's your rate?" without offering personal information, you'll often get:
- A generic rate based on perfect-credit assumptions, or
- A padded rate to protect the lender from quoting too low
Neither of those helps you make an informed decision - and both can be misleading.
📊 30+ Factors That Actually Determine Your Rate
A proper rate quote requires a full picture of your financial scenario, property, and loan details. Here's what we evaluate to give you an accurate, transparent quote:
- Loan Amount
- Loan Program (Conventional, DPA, FHA, VA, USDA)
- Loan Term
- Amortization Type (Fixed Rate vs. ARM)
- Purpose (Purchase or Refinance)
- Refinance Type (Rate/Term or Cash-Out)
- Loan to Value (LTV)
- Combined Loan to Value (CLTV)
- Property County
- Property State
- Property Type (Condo, SFR, Townhome)
- Number of Units (1 - 4)
- Occupancy (Owner Occupied or Investment)
- Credit Score
- Credit History
- Debt Ratios (DTI)
- Asset Verifications
- Reserves
- Relocation Status
- Gift Funds Used
- Seller or Lender Concessions
- Income Verification Type
- Employment Status
- Employment Documentation
- Presence of Co-Borrower
- Citizenship Status
- Rate Lock Period (7, 15, 30, 45, 60, 90+ Days)
- Mortgage Insurance (PMI or MIP)
- Automated Underwriting Result (DU, LP, or Manual)
- Escrow Included or Waived (Taxes & Insurance)
As you can see - it's not just about a number. It's about precision, responsibility, and integrity. We use all of this data to provide you with the best options tailored to your goals - not a one-size-fits-all rate that may not apply to your unique profile.
What You Should Ask Instead
If you're serious about making a smart financial decision, here are three much better questions to ask your lender:
- "Can you help me understand what I qualify for?"
- "Based on my situation, what options would help me save the most money long-term?"
- "Can you walk me through the full cost - not just the interest rate?"
These questions allow for thoughtful, custom responses backed by data - not marketing gimmicks.
Final Thoughts
As professionals with years of experience and a deep commitment to doing what's right, we believe in transparency over tactics. The lowest rate isn't always the best loan, especially when it comes with inflated fees, unrealistic assumptions, or high long-term costs.
At SouthShore Region Mortgage Group, we're committed to doing what's in your best interest - not just quoting whatever number will get us a phone call.
Have questions? Want real answers? Reach out today for a free, no-pressure conversation. We'll walk you through your numbers, answer your questions, and help you navigate your mortgage with clarity and confidence.