Mortgage Rates | EXPOSING The Truth About Mortgages. Many media outlets and fellow YouTubers talk about how mortgage rates are based on the 10-year Treasury but that's not the case. So in this video I invite my friend David to talk about how the mortgage rate is actually calculated and what factors go into deciding the actual rate. David has spent 28 years in the mortgage industry and has seen it all, so he answers and debunks myths about how the mortgage rate is determind! 0:00 Intro 0:48 Debunking the myth about mortgage rates 1:23 How is the actual mortgage rates are determined 2:25 Current events in the mortgage rates world 4:00 Will the Fed continue buying bonds 4:45 What is the TIP 5:54 How is the fed keeping rates low 6:25 How can you track mortgage rates 7:15 Last words on mortgage rates So as we see above the mortgage rate is not actually based on the 10-year Treasury, so David sheds a lot of light on the topic of mortgage rates determination. Now David explains that the easiest way to track mortgage rates is giving the 10-year Treasury a look. But the actual way that mortgage rates are being calculated is the mortgage back securities. And the thing with mortgage backed securities, it can change daily. And it's very volatile, but figuring out the mortgage rates is from mortgage backed securities. Now normal consumers and home buyers pay close attention to the mortgage rates, as they should, but knowing now that the interest rate for the mortgage rates are based on the mortgage backed securites, we need to know how they are determined. A lot of it is based on the bond market which could go up and down daily, just like any other market. Now with a lot of quanatative easing that the federal reserve has been instituting with buying mortgage backed securities to help with the current events, what does that do to the mortgage rate? Well it's keeping mortgage rates still pretty low. With the Federal Reserve offsetting the events that happened within the last year, purchasing mortgage backed securities has assisted with the interest rates staying reasonable. Now how long will the federal reserve continue to buy mortgage backed securities to help out in the market? The Federal Reserve has not mentioned any halting of purchasing mortgage backed securities or any slowdown on QE, so it's hard to tell when they will be stopping. And that within the market is what everyone is trying to figure out. Now what is the real number people need to be paying attention to when it comes to mortgage rates? That number is the Total Interest Percentage and this will tell you exactly how much interest you'll be paying on the money borrowed for the life of the loan. So instead of paying attention to the mortgage rate and the interest rate, take a look at the TIP before getting into a mortgage. Now circling back to the Federal Reserve, how is it that the Fed buying up mortgage backed securities is keeping mortgage rates low? It's as simple as supply and demand. It's helping out with demand for housing and an influx of buyers because the mortgage rates are so low. It incentivises buyers to get locked into a mortgage at a really low rate! 😃 Thanks for Subscribing & Liking our Video! 📧 ⌨️ FREE 7 Day Trial To PropStream Real Estate Investing Software: http://reisoftware.thekwakbrothers.com 📊 Pay Off Your Mortgage In 5-7 Years (On Average): https://www.youtube.com/watch?v=eGVn9iq1e6c 💻 JOIN OUR FREE FACEBOOK GROUP FOR LANDLORDS & PASSIVE INCOME: https://www.facebook.com/groups/bestreigroup 📡 PROTECT YOUR ONLINE DATA AND ACTIVITY WHILE CLOSING DEALS AND GENERATING NEW LEADS WITH NORDVPN: https://go.nordvpn.net/aff_c?offer_id=15&aff_id=40858 🔊 Our Podcast: 🔹Spotify: https://open.spotify.com/show/7pnHJSNl7vPVFzq69IzC6B 🔹iTunes: https://podcasts.apple.com/us/podcast/first-deal-experience/id1282240923 📧 Hire the Kwak Brothers to Speak: info@thekwakbrothers.com #realestateinvesting #thekwakbrothers #realestate ======================== ---DISCLAIMER--- The suggestions, advice, and/or opinions that are given by Sam Kwak (The Kwak Brothers) are simply opinions. There are no guarantees of set outcomes. Listeners, guests, and attendees are advised to always consult with attorneys, accountants, and other licensed professionals when doing a real estate investment transaction. Listeners, guests, and attendees are to hold Sam Kwak, Novo Elite, Inc. and the Kwak Brothers brand harmless from any liabilities and claims. Not all deals will guarantee any profit or benefits. Listeners, guests, and attendees are to view and listen to all materials and contents furnished by the Kwak Brothers as a perspective based upon experience.