 TITLE: How to Compare Mortgage Rates CONTENT: Why Do Lenders Have Different Mortgage Rates?\n---------------------------------------------\nLenders consider market factors and the borrower's finances to set mortgage rates. So, it's not uncommon to receive offers for the same loan amount and term but with different interest rates when shopping around for a home loan.\nIn fact, before the lender processes your application, they evaluate the bond market, federal funds target rate and current market conditions. They also analyze rates and fees from competitors as well as operational and labor costs to set baseline rates.\nWhen reviewing your loan application, the lender evaluates the information in your credit report, your credit score, your debt-to-income ratio and the size of your down payment. Even if you meet the loan program's general guidelines, some lenders have mortgage overlays that could require you to meet more stringent criteria. END