Mortgage Lenders Are Selling Homebuyers a Lie: Alexis Leondis

But frankly, it’s bad advice. New homeowners may come to find they’re in a longer-term relationship with today’s rate than they expected.

Yes, for the last 10 years (before last year’s uptick) rates were much lower, averaging 3.78%. But that doesn’t mean they’ll drop back to those levels anytime soon. In fact, the bond market is starting to price in higher benchmark interest rates following stronger economic data.

Refinancing calculations are also more complex than most realtors and lenders like to admit. While lenders typically say a borrower only has to cut the current rate by a 1/2 or full percentage ...