Question by Sarah C: How do mortgage companies make their money?
Do mortgage companies make money by offering a higher interest rate. For example- one mortgage lender is offering 6.5, and mine is offering 6.75. If they are both equal for service, closing costs, etc., how could one offer a lower rate? Do they stand to make money off of the extra .25%? I tried to negotiate the rate with my current lender, down to 6.5%, but they told me they could not. Are they lying, because they feel they already “have me”?
But isn’t their rate, based somehow on the fed rate?
Best answer:
Answer by draco3838
two words: interest rate.
What do you think? Answer below!
