What Affects My Mortgage Rate?

Let’s be real. Everything but the kitchen sink affects rates.

Understanding what factors affect your personal mortgage rate—whether they’re in your control or not—can help you keep tabs on the market if you’re hoping to refinance your loan someday.

Here are some of the biggest factors that determine your rate.

Credit Score

A higher credit score can help you score a lower interest rate. Lenders look at your score to get an idea of your repayment history. If your score isn’t quite where you’d like it to be, check out this article.

Home Location

Your state, county and even neighborhood are important factors. A historic farmhouse in small-town Iowa will cost less than a newly built home in an up-and-coming suburb.

Loan

Your loan term, loan type and loan-to-value ratio will determine how much of a “risk” you pose to the lender. The higher the risk, the higher the rate.

Your Lender

Every lender is different. At Community Choice, our mortgage team goes above and beyond to secure the best rate possible for our borrowers.

Down Payment

A larger down payment often leads to a lower interest rate. While 20% is common, it isn’t required.

And this is just the tip of the iceberg. If you’d like to learn more about what can affect your rate, reach out to a member of our mortgage team today.

This blog is intended for educational purposes only. For details about specific products or services, see credit union for details. For questions about investments, please consult your financial advisor.