Mortgage interest rates are dependant and affected by what part of the country you live in. Many lenders offer different rates and different pricing based on the state you live in. Just because you may be able to qualify for a certain rate when you are buying a home in one state does not mean the rate will be the same if you were to buy a home in another state. The differences in rates and pricing between states will not usually be very much but just know that there may be a difference. When rate shopping, make sure that you are looking at the rates for your particular state and not the rates for another state or rates that are national averages. Most mortgage brokers are given wholesale rates for their specific state(s) because of the tremendous volume of business that they do with them, and they can pass these great rates on to you, the customer.

Wholesale mortgage rates are generally lower than retail mortgage rates offered by neighborhood banks. Banks are willing to offer wholesale rates through mortgage brokers because brokers perform most of the tasks associated with the loan origination process. In addition, mortgage brokers also pick up the majority of the expenses of generating loan applications, expenses such as advertisement, loan officer and processors wages, office space rents and other overhead costs. Since mortgage brokers take on the bulk of the loan generation expenses, banks are more than willing to offer significantly lower rates through brokers.

There may be adjustments to the wholesale interest rate depending on the particulars of your loan. Loan amount, loan to value ratios, loan program type, and loan purpose usually have adjustments or "hits" that ultimately increase your interest rate in small increments. Consult your mortgage professional for more information.