How Mortgage Interest Rates Really Work — No Secrets, No Smoke & Mirrors

We don’t hide rates behind forms, fine print, or confusing terms. We explain exactly how mortgage interest rates and pricing work — in plain English — and show you real examples that apply to your situation. Have you ever wanted to walk with that car salesman into the back room to witness the conversation they are “having with their manager”? This is us inviting you back into the room with us so you can see for yourself exactly what determines your rate options and why.

Did you know that you always have a range of interest rates from which you may choose on every home loan? If you answered “No” to that question, we are not surprised! Lenders like banks, credit unions and mortgage companies (sometimes labeling themselves as “direct lenders”) would rather you not know how much money they’re making on your loan. Banking laws do not require them to tell you, so to you, it can appear as though they make nothing. Meanwhile, in most cases, they will make more money from your loan than a mortgage broker does at a measurably worse rate/price than what your mortgage broker will find for you in the wholesale lending marketplace.

Most mortgage websites only show flashy numbers or require you to submit an email and phone before you see anything real. That’s not transparency — that’s a sales funnel.

Money Well Lending does things differently:

👉 No mystery rates
👉 No hidden costs
👉 No bait-and-switch games

👉 No adding your contact info to a database and/or selling your info
👉 No jargon without explanation

We break down interest rates, “points” (aka “Discount Points” or “Discount Fee”), closing costs, lender credits, and how all of those components affect your cash to close and monthly payment — on your terms.

🎯 What determines the interest rate you qualify for

• How credit score, down payment, occupancy type and loan type affect your number
• Why rates change daily and what that means to you
• Market rate vs personalized rate

📊 How Origination Fee, Discount Points, and Lender Credits can be structured differently for the same person/loan

• The real math behind points
• When paying points makes sense — and when it doesn’t (think ROI term)
• The difference between Points and Origination Fee

🧠 How Mortgage Payments Actually Break Down

• Principal vs Interest
• Taxes, insurance, PMI — what’s included and what’s not
• How extra payments or refinancing change your long-term costs

🔍 Common Myths & Misconceptions

• “No cost” loans vs zero fees
• Why advertised rates you see are usually misleading
• How lenders REALLY get paid
• Why private mortgage insurance (PMI) can be a lower cost choice in certain down payment ranges
• Why two people that apply for the same loan on the same day for the same amount can have drastically different loan terms

🟢 Schedule Your No-Cost, No-Obligation Rate Education Session

We invite you to:

• Choose the Money Well lending professional with whom you wish to schedule this session by either clicking here and picking your person (they are all the right choice!), or complete the contact info section to the right if you would rather us choose
• Call, text or email them to book a 1-on-1 video session
• Meet via Zoom call or in person if you’re close

…and we will walk you step-by-step through how interest and costs apply to your specific situation — not someone else’s.

No pressure. No sales pitch. Just clarity.

Money Well Lending is committed to mortgage transparency far beyond what is legally required. We believe educated borrowers make better decisions — and better relationships. Make us “put our money where our mouth is”. We would love to earn your confidence!