As of April 1, 2011 the Federal Regulations take place which require mortgage lenders to keep consistent margins on mortgage products, no matter what the loan amount, in many cases. Mortgage Lenders earn profit based on a percentage of the loan amount you place with them. The loan officer typically makes a commission on this percentage. That is how they earn their living. New regulations require the loan officer to make a consistent percentage on the loan amount so lender must keep their margins consistent. What does this do for higher loan amounts? In many cases it will cause those rates to increase. Until now a lender could earn a margin of say 2% on a $ 100K loan to earn the revenue needed to pay overhead, commissions etc. On a $ 400K loan the margin wasn't needed at 2% but maybe only at 1% to earn enough revenue to pay overhead, commissions etc. This meant the borrower with the higher loan amount got a break on the interest rate compared to the lower loan since the lender was earning a percentage of the loan. With the new regulations, the borrower with the higher loan amount loses that break. Seem strange that regulations were passed that keep a mortgage company from giving a break in rate to a customer. However, that is what is happening.