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Cindy Said:

When mortgage lenders say "the bond market moved" so the rates are going to go down, what does that mean?

We Answered:

There are two bond markets in general that affect mortgage rates. The first is US government bonds, which help establish a "credit risk free" yield (or rate).
The second is the mortgage bond market. When you get a mortgage, it is put into a pool of other similar mortgages. That pool is then sliced up and sold as bonds to investors. Those bonds trade in a market of their own.
When you hear someone say "the bond market moved" and rates are going Higher/lower, most likely they are referring to the US govt market rates going up or down.
For the record, there is not a 100% correlation between us govt bond rates and mortgage rates. Credit risk, housing market risk, etc will sometimes make morgage rates move more or less than the change in govt bonds. However, there is a positive correlation in general, which means they will usually move in the same direction, though at varying amounts.

Franklin Said:

Discussing Mortgage rates with multiple lenders, do I have to reveal any name details?

We Answered:

in this market I think you are going a little too far. Just ask for a full quote from all four of them and make your decision.

Charlotte Said:

why are mortgage lenders rates so high for persons with less than 620 credit score from last year.?

We Answered:

if you have less than a 620...then you should get 7% or less with FHA.....
other government programs will give you the same thing BUT you will be paying HIGH PMI payments

June Said:

How safe are internet mortgage lenders?

We Answered:

I'm going to have to disagree with the choir of local mortgage brokers chiming in here.

Let me try to answer your questions

1. Shop for the best rate, certainly an online lender may be able to give you a slightly better price as their salespeople may not be motivated directly by the rate they charge. Local mortgage brokers always earn more money if they are able to charge you a higher rate.

2. Use a reputable company, do you research. Quicken Loans, HFA, The Money Store are all relatively reputable. All major brands such as Countrywide, American Home Mortgage, Washington Mutual, also offer mortgages "online" via a centralized lending center.

3. Unless it is important to you to feel comfortable looking at your mortgage processors, you don't need a local representative from the mortgage company. The mortgage company will find you a reputable local real estate appraiser and closing agent.

4. Certainly. IMLs can close loans at specified rates, in fact due to the lack of in person relationship, their practices tend to be under much higher scrutiny than the glad-handing local mortgage broker who will take you out for a beer after signing the papers.

5. Thankfully, no problems in my experiences, I have done everything online since 1999.

6. They frankly don't like them, as Realtors like to control the mortgage business. It gives them leverage with the appraisers, settlement agents and mortgage lenders, and potentially pays in gifts and incentives to become buddies with your local mortgage broker.

Hope this helps. In general, any company can do a bad job or act dishonestly with a consumer. Online or offline. Work with a reputable company. Do your homework but don't be blinded by the simple fact that a company may be local.