What determine interest rate, cause I'm in the process of closing, and big banks like wells fargo said that they can only give me a rate of 6.35 but mom and pops brokers are telling me that I can get 5.75 with them, is that possible. I'm also doing a conventional loan also, not FHA, can someone give me some advice. Is my interest rate high cause of my credit, I haven't close yet so can I still go to that mom and pop brokerage

Mom and Pop mtg. brokers often throw out teaser rates and really can't give you those rates. A certain credit score gives you a certain rate and that's that. The only way they can bring down the rate is by using a buydown, money contributed from the seller usually and its not worth it. 1% of the mtg. price may get you 1/8% lower. The brokers love this because a good portion of that money goes to them. Loan originating, qualifying, and processing for the most part nowadays is computerized

Another way the brokers can give a lower rate is by charging fees that will be added to the loan balance.

Right again scott. Thanks for pointing out what I forgot to mention.