Not to be confused with “sub-prime” loans, a below-market loan is merely a loan with an interest rate below the rate that banks and other lenders publicly announce.  Posted rates are normally a full percentage point above what lenders can actually offer. To that end, lenders build a margin into their posted rate to give themselves “wiggle room” as they expect borrowers to negotiate the interest rate down.

 

It’s more about who you know than what you know. There are dozens of tricks to getting a below market rates on  home loans, but at the end of the day, you’ll need to go through a lender to get the loan.  That’s why having the right lender is crucial.

 

Being aware of what you may need to do in advance to acquire a favorable interest rate on a loan is important, as this process can take time, but most importantly, you need to find a loan officer who has the integrity to direct you to a different lender if they know there’s a better product out there that they can’t access.