Mortgages Unlimited, Minnesota, Wisconsin, and South Dakota today's Mortgage Rates in Minnesota, Wisconsin, South Dakota

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Lowest Interest Rate or Lowest Closing Costs?
Plus NO Lender Fee, NO Closing Costs, No Origination Fee Mortgages. How do they all work?

We are a Direct Lender
We fund and close our own loans

A common mistake mortgage loan shoppers make is to ask: "What's your lowest interest rate?" or "What are your closing costs?"

Both logical questions to ask, but they do not give the response most borrowers need to make a proper decision. Borrowers must understand both interest rates and closing costs, and how they interact with each other.  Interest rates are only half the answer to getting the best mortgage deal. It is possible end up with a low rate, or with low or no closing costs, but not necessarily the best deal.

First understand that all lenders have essentially the exact same third party closing costs to do your mortgage loan.

This includes appraisal, credit report, state taxes, county recording fees, title company charges, etc.  Mortgage companies also have to pay the same loan officers, underwriters, processors, and back office staff, so they all need to charge origination fees, processing fees, etc.

So if all lenders have essentially the same costs to obtain, process, and close your mortgage loan, how can one lender do it cheaper then the next? The answer is they can't. Remember that nothing is ever free. Lenders simply use "reverse points" whenever they claim to offer any sort of no origination, no closing costs, or lower closing cost mortgage.

Best Mortgage Company in Minnesota Wisconsin South DakotaSimply put, the lowest rate & the lowest fees do not go hand-in-hand. NO LENDER can offer both together. I can give you the lowest interest rates, but it will cost you in higher closing costs. I can give you the lower closing costs, but lenders make it up by charging a higher interest rate. Most lenders quote their best rate in combination with covering all third party fees (appraisal, credit report, title company, state taxes, county recording fees, etc) with 1% origination ("standard" in the example below).

Interest Rate versus Closing Cost Comparison

Here is an example of Rate vs. Costs on a $200,000 - 30 year fixed loan

  Lower Rate Standard Quote

Low Cost

Total NO Cost

good faith estimate in MN, SD, or WI






Origination Fee





Discount Points





Closing Costs $7167 $5042 $3042  $0.00
          Apply online for a MN, SD, or WI mortgage loan

Monthly P & I Payment





10 Years of Interest





20 Years of Interest





30 Years of Interest





I can offer you all four options on all most of our mortgage loan programs.

The combination of rate & fees can be very confusing. One lender is screaming "No closing costs." A second lender may quote you 5.25% with $2246 in fees, while another lender is offering 5.00% with $4130 in fees. So are closing costs and fees bad? Well if you ask everyone's brother who has a real estate license and knows everything about mortgages, then the answer you will most likely hear is yes.  I am here to tell you everyone's brother is probably wrong.

Good enough answer?  I didn't think so...

Begin by asking yourself "How long am I going to be in this property?" This is the single most important question to determine which option is best for you. Now look at the chart above. It becomes very obvious based on how long you are going to be in the home if 'Best Rate or Lowest Cost' makes the most sense for you and your family.

Congratulations, you are now smarter than everyone's brother, mother and sister with a real estate license.


  Equal Housing Lender

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33 Wentworth Ave E - Suite 290
St Paul, MN 55118

(651) 552-3681  

Top Minneapolis Mortgage Lender 2012 Member in Good Standings, Minnesota Mortgage Association

Our services available only for properties located in Minnesota and Wisconsin. Licensed as Mortgages Unlimited, Inc. NMLS # 225504. As a Lenders One partner, we are part of the 3rd Largest Retail Mortgage Originators in the country. We are consistently ranked as one of the top mortgage lenders in Minnesota by Minneapolis St Paul Business Journal. Any use or duplication of any materials is strictly prohibited.  All images, text, and materials Copyright 1998 - 2018 Joe Metzler. This is the private web site of Joe Metzler, NMLS #274132. All Rights Reserved.