QUESTION: I’m ready to get a mortgage loan, but I want to get the lowest rate possible. What are the most important factors that will determine my interest rate?
ANSWER: When you apply for a mortgage loan, your lender will look at several important factors. The first factor is your credit score. For the most part, borrowers with a higher credit score will get a lower interest rate than borrowers with a lower credit score. The next factor your lender will look at is the location of your home. This can include everything from the state you live in to whether your home is in an urban or rural area.
After that, lenders will consider your home price and loan amount. Generally, homebuyers can expect to pay higher interest rates on loans that are especially large. Additionally, don’t forget that a larger down payment usually means a lower interest rate.
Source: Consumer Finance
I’ll continue to monitor economic reports closely, but if you have any immediate questions, please call or email today.
We are ready to help you find the best possible mortgage solution for your situation. Contact Sheila Siegel at Synergy Financial Group today.
