Mortgage shoppers ask this question all the time. It’s useful information if you’re trying to discern variable rate trends. While the answer is convoluted, below is some insight into how variable-rate discounts are formed and why they change. Setting the Discount Most of the time, lenders price closed variable mortgage rates at a discount from their prime rate. There are two...

When a prospective homebuyer finds out they don’t need to pay for the services of a mortgage broker, their first thought is often: “What’s the catch?” Like many financial advisers, mortgage brokers typically get paid by commission. The lender providing the mortgage pays the broker that commission (finder’s fee) for referring and managing the application and mortgage closing. How Much...