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How Are Mortgage Rates Set on Small Investment Properties With 2 To 4 Units?

One of the most common misunderstandings I have seen over the past 33 years as a real estate agent is that most real estate buyers and investors need to understand how mortgage rates are set.

Every time the Fed raises the overnight cost of the fund’s rate, there is a common misunderstanding that has a direct relationship to mortgage interest rates. While there is some correlation between how mortgage rates are set and the Federal Reserve raising the overnight rate, how mortgage rates are set can be better understood by watching this brief video.

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