Most homebuyers are ending up with higher interest rate than what is the lowest interest rate. A recent review of over 1,600 mortgages in 2025 discovered that 68% of those mortgages had a higher than the lowest interest rate offered at that time.
Why?
There are several factors. Mortgage lenders have to pay extra costs to investors based on nine factors:
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Credit Score – 620 to 780
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Down Payment – Percentage down
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Type of Home – Single Family, townhome, condo or manufactured home
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Purpose of Loan – Purchase, refinance or cash out refinance
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Number of Units – 1, 2, 3, or 4
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Fixed or Variable Interest Rate
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Loan Balance
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A Second Mortgage – yes or no
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Occupancy – Live in it, 2nd home or investment
Lenders have to pay extra hidden fees based on your answers to those nine questions. The higher the fees, the higher the interest rate will be. If a lender has to pay 1.00% in a hidden fee for a 730 credit score and 10% down on a 30-year fixed conventional mortgage, the corresponding fee is $4,000 on a $400,000 loan. To offset this cost, the lender will have to increase the interest rate. If the best interest rate is 6.00, the lender will adjust the interest rate higher to say 6.50% to cover that $4,000 cost.
Unfortunately, sdhopping lenders trying to find the lowest interest rate will not help reduce tis fee and lower the interest rate for a homebuyer. All lenders have to pay the same fees. So every lender will be offering 6.50% - maybe 6.375%. But no lender will absorb that entire $4,000 cost and offer a 6.00% interest rate.
Do lenders have to disclose these fees? No. These fees do not show up on any Closing Statement or Loan Estimate. They are hidden in most cases. This is why homebuyers are paying higher interest rates. They have no way of knowing. And loan officers are not going to tell you about these fees because they will tell you, "Motgages are complex."
What can you do? Mortgage 850 by My Credit Plan discloses these hidden fees and how they impact interest rates across dozens of possibilities. Knowing how these fees impact interest rates, payments and purchasing power can help all homebuyers secure lower interest rates and payments and increasing home purchasing power.
A homebuyer can increase their home purchasing power by up to 26% without increasing a payment. It is a program worth your investment becuse you can easily save thousands of dollars in most cases.