FIRST-TIME BUYERS

Why We Show You Six Rates — Not One

Reviewed by Susan Pryor, Licensed Mortgage Loan Originator, NMLS #157369 — Updated August 2026

Last updated: August 2026

Key Takeaways

  • Lenders often quote one rate, which hides the real trade-offs
  • Multiple rates are always available on the same loan
  • A lower rate usually means paying discount points upfront
  • A higher rate can come with lender credits that reduce cash to close

Most lenders give you one rate when they quote you.

That doesn’t make a lot of sense — because at any given moment, there are many rates available for the exact same loan. When a lender gives you only one option, it’s probably either the rate they would pick for themselves, or the rate they think will keep you from shopping around.

That’s not how we work.

The promise

When you go under contract, we do the extra work to show you all six rate options for your exact loan. Same loan, same terms — just different combinations of rate and upfront cost, so you can see the full picture.

How the trade-off works

A lower rate usually means more upfront cost — discount points paid at closing.

A higher rate usually means less upfront cost — sometimes even a lender credit that reduces what you bring to closing.

The right choice depends on how long you plan to stay in the home and how much cash you want to keep in your pocket.

RateUpfront Cost (Points vs. Credit)Estimated PaymentCash to Close
5.875%+2.00 points ($8,000)$2,366 / mo+$8,000 vs par
6.125%+1.00 point ($4,000)$2,430 / mo+$4,000 vs par
6.250%+0.50 points ($2,000)$2,463 / mo+$2,000 vs par
6.375%Par — $0$2,495 / moBaseline
6.500%−0.50 credit ($2,000)$2,528 / mo−$2,000 vs par
6.750%−1.25 credit ($5,000)$2,594 / mo−$5,000 vs par
Illustrative example on a $400,000 loan amount. Estimated payment is principal and interest only. Not a quote or a commitment to lend.

We walk you through every option. You choose what’s in the best interest of your family — based on the payment you’re comfortable with and the cash you want to hold onto.

No pressure. No black box. Just clear information so you can make a confident decision.

FAQ

Common Questions

Because it’s easier — and because one number is harder to compare. At any moment there are many rate-and-cost combinations available for the same loan. Showing one hides the trade-off; showing six puts the choice where it belongs: with you.

Money you pay at closing to get a lower rate. One point is 1% of the loan amount. Whether points make sense depends mostly on how long you’ll keep the loan.

The reverse of points: you accept a somewhat higher rate, and the lender contributes money toward your closing costs — reducing your cash to close.

It depends on how long you plan to stay, what payment fits your budget, and how much cash you want to keep. We walk through all six with you — the choice is yours, made with real numbers in front of you.

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About Southern Mortgage Authority — Susan Pryor, Branch Manager | Licensed Mortgage Loan Originator, NMLS #157369, has served 6,000+ clients over 25 years. Based in Marietta, GA and licensed in 13 states. Call 678-712-2063 or send us a message.

Susan Pryor NMLS #157369 | Ark-La-Tex Financial Services, LLC NMLS #2143 d/b/a Benchmark Mortgage | Equal Housing Lender. Not a commitment to lend. All loans subject to credit approval.