A lender rate sheet is essentially the daily pricing menu mortgage lenders use to determine the interest rates and associated costs for various home loan products. This sheet is updated frequently, often daily, reflecting changes from the bond market, particularly Mortgage-Backed Securities (MBS), which influence mortgage interest rates.
The rate sheet contains a matrix of loan programs (e.g., 30-year fixed, 15-year fixed, FHA loan), interest rates, and pricing expressed in points which are either paid as discount points to lower your rate or given as lender credits to help with closing costs. For example, a par rate is offered with zero points, discount points reduce your interest rate but increase upfront costs, and lender credits raise your rate in exchange for closing cost assistance.
Lender rate sheets are dynamic because mortgage rates fluctuate with MBS prices — when MBS prices rise, rates usually fall; when MBS prices drop, rates typically rise. Lenders may issue multiple rate sheets during a day to stay aligned with market conditions. Borrowers can lock in a rate for a specified period, securing a price from the sheet, which protects against rate increases while processing the loan.
The rates shown on the rate sheet are for an ideal borrower profile. To determine your final rate, lenders apply Loan-Level Price Adjustments (LLPAs) based on your credit score, loan-to-value ratio, property type, occupancy status, and loan amount. These factors reflect the risk the lender assumes and adjust the cost or rate accordingly.
It’s important to understand that each lender creates its own rate sheet reflecting their costs, profit strategies, and risk appetite, so rates can vary between lenders. Therefore, shopping around and comparing rate sheets or quotes from multiple lenders can help you find the best mortgage rate.
For those interested in locking their rates to protect against market changes, FinHelp.io has a helpful glossary entry on “Interest Rate Lock” that explains this concept in detail: https://finhelp.io/glossary/interest-rate-lock/.
Understanding a lender rate sheet provides transparency into how mortgage rates are set and empowers borrowers to ask informed questions about rate options and closing costs during the loan process.
For authoritative guidance on mortgage interest rates and risk factors, see the Consumer Financial Protection Bureau’s explanation of What Determines My Mortgage Interest Rate?.
