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Mortgage Finance > Mortgage > Mortgage Rate
Mortgage Rate
The following is a list of factors that usually affect your mortgage rate:
- Credit quality and debt-to-income-ratio affect the terms of your loan through FICO Score. If you have good credit and your monthly income far surpasses your monthly debt obligations, you will get approved at a lower interest rate.
- The amount of your loan can increase your interest rate if the amount financed exceeds the conforming loan limits
- Shorter loans, such as 20 year or 15 year note, can save you thousand of dollars in interest payments over the life of the loan, but your monthly payments will be higher.
- An adjustable rate mortgage may get you started with a lower interest rate than a fixed rate mortgage, but your payments could get higher when the interest rate changes.
- A larger down payment – greater than 20% - will give you the best possible rate.
- The total cost of the loan -- the annual percentage rate (APR) -- will be higher depending on how much you pay in origination fees and other costs to get the loan.
- Closing costs are fees paid by the lender, if you don’t want to pay all of the closing costs, expect a higher rate which will pay the lender additional interest over the life of the loan.
- If you've got the cash now and want to lower your payments, you can pay on your loan to lower your mortgage rate
Related Links:
>> Fixed Rate Mortgage
>> Adjustable Rate Mortgage
>> Mortgage Points
>> Annual Percentage Rate
Additional Links:
Home Equity Line of Credit
Debt Consolidation
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