Mortgage Interest Rate Factors

Economic Conditions: Mortgage Rates often follow our economic health. When inflation is high, rates tend to rise, when the economy slows down, rates can fall. Economic uncertainties play a role as well.

Mortgage Type: Fixed rate loans vs variable or adjustable rate loans. If your new mortgage is a purchase, refinance or switch, this will determine your interest rate eligibility.

Mortgage Term Length: Historically 5-year terms yield the lowest rate, while shorter terms come with a slightly higher rate.

Down payment or Equity: The amount of down payment for a purchase or amount of existing equity can determine your interest rate eligibility. Commonly referred to as Loan-to-Value.

Lenders & Locations: Some lenders have different preferred lending areas, along with property type requirements. That low-rate basic you see advertised online might not be available in your area or for your property type.

Credit Score: A low credit score is considered riskier for a lender and could mean a higher interest rate. Most lenders have a minimum credit score of 680.

🔑 Understanding these factors can help you plan ahead and lock in the best possible rate for your dream home!