![]() ![]() ![]() This creates a tidal wave of new work for mortgage lenders. They see an opportunity to lock in a lower rate and payment for the rest of their loan. Typically when rates fall, homeowners rush to refinance. However, some lenders will charge more for a refinance under certain circumstances. Rates for a home purchase and mortgage refinance are often similar. Verify your new rate Are refinance rates the same as mortgage rates? To find the best rate for your situation, you'll want to get personalized estimates from a few different lenders. Remember, every mortgage lender weighs these factors a little differently. These let you pay money upfront to lower your interest rate Mortgage discount points - Borrowers have the option to buy discount points or 'mortgage points' at closing.Borrower's credit score - Typically the higher your credit score is, the lower your mortgage rate, and vice-versa.Loan term - Loans with a shorter term (like a 15-year mortgage) typically have lower rates than a 30-year loan term.The more debt you currently have, the less room you'll have in your budget for a mortgage payment Debt-To-Income ratio - This number compares your total monthly debts to your pre-tax income.A lower LTV, meaning a bigger down payment, gets you a lower mortgage rate Loan-to-value ratio (determined by your down payment) - Your loan-to-value ratio (LTV) compares your loan amount to the value of the home.Investment properties, second homes, and vacation homes have higher mortgage rates Property type (condo, single-family, townhouse, etc.) - A primary residence, meaning a home you plan to live in full time, will have a lower interest rate.Lender capacity - When a lender is very busy, it will increase rates to deter new business and give its loan officers some breathing room.Overall strength of the economy - A strong economy usually means higher rates, while a weaker one can push current mortgage rates down to promote borrowing.Mortgage and refinance rates vary a lot depending on each borrower's unique situation.įactors that determine your mortgage interest rate include: How your mortgage interest rate is determined ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |