Can the mortgage rates be negotiable?

PamelaDurden

I'm learning a TON about the mortgage game. There's so much that goes on behind the scenes with mortgages being bought/ sold, etc.

With all this craziness, I just had the thought, are mortgage rates negotiable?
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I've called around a bunch the past couple days shopping for the best rate. I've been quoted several different interest rates for the exact same loan. 2 specific examples are 4.375% and 4.25%.

So my question is this, are the rates negotiable? What happens if I walk into one of these local banks and tell them that I'll only pay 4%? Do I get laughed out of the bank? Are mortgage originators allowed to adjust rates?

Also, should I go with the three years fixed rate mortgage or with the variable rates?. Are we going to see a rise in the interest rates anytime soon?