This week’s Genie is Mark Weddle of Salem Financial … specifically this week, Mark wanted to address the misconception between the prime rate, and the actual mortgage rate you’ll see on your loan.  Yes Virginia, there is a difference.  Mark says …

"I want to address a common misperception concerning the relationship between the prime interest rate and mortgage rates.  According to the Wall Street Journal, the Prime Interest Rate is defined as, " The base rate on corporate loans posted by at least 75%of the nation’s 30 largest banks."  In March of 2005 the prime was at 5.75% and in March of 2006 the prime was at 7.75%.  Currently the prime is at 8.25%.  Many people believe that mortgage interest rates mirror the prime rate.  That is not true.  Even though many newspapers, magazines, etc. would have you believe that mortgage rates are climbing, I have not found that to be true.  I have been quoting a 30 year fixed mortgage rate, with no points, of around 6% for about a year.  As a matter of fact, I just quoted a 30 year fixed rate, again with no points, this week for 5.75%. If you would like an updated quote, please email me at mweddle@salemfinancial.com or call me at (866)961-3966.  I would love to talk with you."

Give Mark a call – he and his staff would be excellent resources to discuss all different types of loans, including refinances and loans on existing as well as new construction.