Why do the different lenders have different rates

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Reference no: EM131489183

Question: Find 5 different online mortgage lenders, such as this onehttps://www.lendingtree.com/

From these 5 lenders, find the following rates, assuming the mortgage payments are made monthly:

- 10-year (if available) for fixed-rate mortgage

- 15-year (if available) for fixed-rate mortgage

- 30-year for fixed-rate mortgage

- Convert these rates into effective annual rates (EARs).

- Discuss which rate is actually the cheapest rate.

- What are 2 things about the sample Web site given above that could be applicable to a consumer or investor?

- Present the rates in a table. List the quoted rate and EAR rate, the lender, and the maturity of the loan. Show your work for each calculation.

- What is 1 mistake people make when calculating their mortgage payments? Explain your answer.

- Based solely on the EAR, which rate is the cheapest? Does this make sense?

- Why do the different lenders have different rates?

- Is the difference in rates going to make a huge impact on the cost to the homebuyer? Explain your answer.

Reference no: EM131489183

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