Do The Largest Mortgage Lenders Offer The Best Rates?

Some people are under the assumption that the largest mortgage lenders are able to offer the most competitive interest rates on home purchase loans, but, this is not the case. There are many factors that determine what rate different home mortgage lenders will offer to potential home loan borrowers, but company size is not one of the factors.

Different Mortgage Lenders and Different Rates

Rates can vary widely, the reasons why different companies may offer you different rates on a home mortgage can often be confusing and hard to determine. 

For instance, smaller companies that are seeking to grow and expand in the home mortgage market may be more inclined to accept additional risks and offer reduced interest rates to potential customers. They do this in order to increase the number of loans they have outstanding, and to increase interest-rate revenues. In short, these companies may not yet be well established and they offer lower rates to attract new customers.


So, in conclusion, you should never assume that because a home mortgage lender is a large company that their rates are less than other companies on the market. The rates of the largest mortgage lenders may or may not be lower than many small lenders that make home loans available to consumers. You simply need to research and compare rates and offers - from different home mortgage lenders.

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