Three Factors That Impact Your Mortgage Interest Rate - MortgageDepot

Abstract

Even a fraction of a percent can seriously affect how much money you pay toward interest over the life of your loan. How can you score the lowest interest rate and ultimately save some cash? We are committed to helping clients find a home loan that suits their needs, minus the financial uncertainty. Many factors determine your mortgage interest rate, but the three that we are going to talk about today are the most impactful. Your Risk Profile If the lender believes you are likely to miss mortgage payments or default altogether, you'll have a higher interest rate than those who present with minimal risk. Our loan officers can offer more tips! Type of Property Some property types fetch a higher interest rate than others. Here are a few examples: Condos Multi-family investment properties Vacation homes Co-ops Manufactured homes Mixed-use properties Unusual structures, such as log homes or geodesic domes The Lender Did you know that different lenders offer different interest rates? You shop around for cars, homes and other material items, but you probably haven't thought about shopping for the best mortgage rate! A recent study by Freddie Mac showed that borrowers who received multiple mortgage quotes ultimately received a lower interest rate. Remember this: You could be paying your interest rate for up to 30 years, so it pays to take the time to explore your options! Get the Lowest Interest Rate With MortgageDepot! At MortgageDepot, we have access to multiple lenders and loan programs to help you find a sensible mortgage solution.