Why You Should Always Ask for the Full Rate Sheet Before Locking Your Mortgage

When you’re ready to lock in your mortgage rate, most lenders will offer you one option—often whatever looks best at first glance. But smart borrowers know: you should always ask for the full rate sheet.

Why?

Because behind that single rate quote is a wide range of choices—each with its own costs, trade-offs, and long-term implications. Understanding all of your rate options helps you make a decision that fits your financial strategy, not just the lender’s margin.

Rate Sheet 101: What You’re Not Being Shown

A typical mortgage rate sheet includes:

• Multiple interest rates, ranging from lower-cost/higher-rate options to higher-cost/lower-rate options
• Pricing adjustments, including discount points, lender credits, and rate lock fees
• Loan-level price adjustments (LLPAs) based on credit, occupancy, property type, and more

Some lenders only show the “par rate” or a rate they want to sell you. But you deserve to see the full menu.

The Real Trade-Off: Higher Rate vs. Higher Cost

Let’s break it down.

• A lower interest rate usually means paying more upfront in discount points (one point = 1% of your loan amount).
• A higher interest rate may come with no points—or even lender credits that reduce your closing costs.

So which should you choose?

Our General Advice When Rates Are in the 6–7% Range

Right now, with mortgage rates in the 6–7% range, we typically recommend selecting a slightly higher rate with lower upfront costs. Why?

1. There’s a decent probability that rates will drop over the next 1–3 years. If they do, you’ll be in a great position to refinance.
2. Time value of money matters—keeping more cash in your pocket today can have more utility than saving a few bucks per month in interest.
3. Flexibility wins. You avoid sinking cash into closing costs that might be wasted if you refinance in the near term.

Don’t Overextend for a Big Down Payment

While it’s tempting to put 20% down to avoid PMI, we recommend evaluating lower down payment options, especially if you have excellent credit.

Here’s why:

• PMI can be surprisingly cheap—especially with a strong FICO score
• You may need cash for home improvements or emergency reserves
• Liquidity is power. Keeping more funds accessible gives you options down the line.

Strategy Tip: Buy First, Recast Later

If you’ve got a chunk of cash sitting in your checking account, don’t rush to dump it into the mortgage—especially before you move in.

We suggest:

1. Get into the home with a manageable down payment
2. Use your savings for essential upgrades that make the home livable and enjoyable
3. Then recast your loan—this lowers your monthly payment by re-amortizing the loan after a lump sum payment (without a full refinance)

It’s a powerful strategy that keeps your mortgage flexible while prioritizing your lifestyle and cash flow.

Bottom Line

Always ask for the full rate sheet. Don’t settle for one number. And remember:

• A slightly higher rate can be a smarter long-term play
• Liquidity matters more than hitting 20% down
• Use tools like recasting to tailor your mortgage after closing

If you want a quote that lays out every option—no pressure, no sales pitch—Pure Rate Mortgage will show you the full picture so you can make a confident, informed choice.

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www.purerate.com

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