How a Lower Interest Rate Can Reduce Your Monthly Payment

Mortgage payments are driven by three primary factors: loan balance, interest rate, and loan term. Even small differences in interest rates can affect monthly payments—especially on larger loan amounts.

Wholesale mortgage pricing often differs from retail pricing because lenders compete directly for broker-submitted loans. In some cases, this structure can reduce interest costs or provide lender credits that offset closing expenses.

Rather than focusing on headline rates, it’s more useful to compare:

• Monthly payment differences 
• Total interest paid over time 
• Upfront costs versus long-term savings 

A side-by-side comparison can help determine whether a wholesale rate structure improves affordability in your specific situation.