A loan is fully approved. The terms are solid. The borrower is comfortable.
Then — a shiny email arrives advertising a rate that looks better.
Cue the phone call.
Here’s the part consumers don’t see: interest rates are scenario-driven, not headline-driven.
The rate on a loan is affected by dozens of factors, including:
• Credit score tiers
• Loan-to-value (LTV)
• Loan size adjustments
• Property type
• Occupancy
• Purchase vs. refinance
• Cash-out vs. no-cash-out
• Market movement on the lock date
When a bank advertises a rate, they’re showing the best-case scenario — typically:
• Excellent credit
• Low LTV
• Large loan amount
• Owner-occupied
• Minimal risk profile
• Often with significant points
That rate is designed to make the phone ring.
In a recent refinance I’m working on, the loan is approved at 84% LTV with a 6.125% rate and .65 points. A solicitation from the same lender advertised 5.99% — with no reference to LTV, points, or loan structure.
Once the real scenario is applied, those ads almost never hold.
This is why experienced professionals focus on Loan Estimates, not marketing emails — and why educating clients upfront prevents panic later.
The lowest rate on paper is meaningless if it doesn’t survive underwriting.
