Can mortgage rates/terms be "too good"?Under the heading of "if it sounds too good to be true..."My general understanding of the mortgage business is that there are no "magic lenders". For the most part, all lenders/brokers are going to have rates +/- 1/8th, and what sets them apart is fees/costs.So, what is the likelihood of a lender/broker having rates 1/4-to3/8 below what most others are offering - without any real concessions on other terms or cost/fees? Do some brokers have access to funding sources that are willing to discount below par?If the rates/terms/costs are just "being discussed" (i.e., not on a GFE), then are there any legal obligations on the lender/broker (irrespective of whether or not it would be a wise business practice to "informally discuss" one set of rate/terms/costs and then hit the consumer with another set on the GFE.)?November 17 2012 - US11YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.