4 Things That Impact Your Mortgage Rate

Home buying has never been more competitive. With mortgage rates on the rise this year, buyers are being forced to look for cheaper options outside their desired area of residence or spend much higher amounts than they had planned if financing is not an option at all due in part from rising interest payments over time that could have been avoided with better planning before hand!

Your Credit Score

Credit scores can play a big role in your mortgage rate. Freddie Mac explains:

When you build and maintain strong credit, mortgage lenders have greater confidence when qualifying you for a mortgage because they see that you’ve paid back your loans as agreed and used your credit wisely. Strong credit also means your lender is more apt to approve you for a mortgage that has more favorable terms and a lower interest rate.”

That’s why it’s important to maintain a good credit score. If you want to focus on improving your score, your trusted advisor can give you expert advice to help.

Your Loan Type

There are many types of loans, each offering different terms for qualified buyers. The Consumer Financial Protection Bureau (CFPB) says:

There are several broad categories of mortgage loans, such as conventional, FHA, USDA, and VA loans. Lenders decide which products to offer, and loan types have different eligibility requirements. Rates can be significantly different depending on what loan type you choose.”

When working with your real estate advisor, make sure you find out what’s available in your area and which types of loans you may qualify for.

Your Loan Term

Another factor to consider is the term of your loan. Just like with location and loan types, you have options. Freddie Mac says:

When choosing the right home loan for you, it’s important to consider the loan term, which is the length of time it will take you to repay your loan before you fully own your home. Your loan term will affect your interest rate, monthly payment, and the total amount of interest you will pay over the life of the loan.”

Depending on your situation, the length of your loan can also change your mortgage rate.

Your Down Payment

If you’re a current homeowner looking to sell and make a move, you can use the home equity you’ve built over time toward the down payment on your next home. The CFPB explains:

In general, a larger down payment means a lower interest rate, because lenders see a lower level of risk when you have more stake in the property. So if you can comfortably put 20 percent or more down, do it—you’ll usually get a lower interest rate.”

To learn more, connect with a lender to find out the difference a higher down payment can make for your new mortgage.

Bottom Line

These are just few factors that can help determine your mortgage rate if you’re buying a home. The best thing you can do is have a team of professionals on your side. Connect with a local real estate professional and a trusted lender so you have the expert advice you need in each step of the process.

15 Properties
Page 1 of 2
Pending
4199 Bradford St NE Grand Rapids, MI 49525
3
Beds
2F11/2
Baths
2,823
Sq.Ft.
1987
Year Built
45
Days on Site
22044822
MLS
Welcome To This Newly Updated Home In Forest Hills Schools With Desired Grand Rapids Township Taxes! Generously Sized Living Room With Big Picture Window And Dining Area, Great For Entertaining....
3
Beds
2
Baths
2,475
Sq.Ft.
1994
Year Built
76
Days on Site
22041172
MLS
Exceptional location near Gun Lake on a 1.9 acre corner lot in the Martin school district. This wonderful home has so much to offer from the wood-burning fireplace in the spacious living room to the...
4
Beds
2
Baths
1,776
Sq.Ft.
1965
Year Built
6
Days on Site
22049784
MLS
Welcome home to this beautiful colonial home, nestled in the trees of Waukazoo Woods and steps from Lake Macatawa access. Featuring 4 bedrooms, 2 1/2 baths and many surprising amenities. The main...
3
Beds
2
Baths
2,064
Sq.Ft.
1920
Year Built
15
Days on Site
22048958
MLS
Five acres of rolling woods and nature. This property is in the Northview School District and only minutes from Knapps Corner. Whether you are looking to build for privacy and location or looking for...
2
Beds
2F11/2
Baths
1,592
Sq.Ft.
1988
Year Built
10
Days on Site
22049214
MLS
Welcome to the Leisure Creek Condominium Community. This spotless unit features a 1 main floor bedroom and an additional lower level bedroom. There is a third room on the main level that could...
Pending
1341 Jeffery St Hudsonville, MI 49426
3
Beds
1
Baths
1,224
Sq.Ft.
1970
Year Built
92
Days on Site
22038524
MLS
Welcome to this 3 bedroom.home. Additional garage 30x20 for additional storage. Located on a short cul-de-sac street.
The basement is clean and wide open ready for your future expansion. Just a...
12.74
Acres
29
Days on Site
22047439
MLS
Search prop on www.auction.com for details and offer opportunities. Decisions may take 1 week. Contact agent or Auction.com (1-800-793-6107) directly for info. 5% or$2,500 minimum buyers & rsquo;...
$132,000
Neighborhood: Oj Merritt Addition
3
Beds
1F11/2
Baths
1,166
Sq.Ft.
1917
Year Built
21
Days on Site
22048415
MLS
Wonderful single family home oozing with potential, perfect for first-time homeowners or investors. This home was built in 1917 and features 3 bedrooms and 1.1 bathroom, with plenty of living space....
Pending
5844 Orleans Rd Orleans, MI 48865
2
Beds
2
Baths
1,104
Sq.Ft.
1995
Year Built
12
Days on Site
22049146
MLS
See this wonderful home today. This single section manufactured home ideally located just off M-44 in Orleans Mi. The freshly updated interior is a pleasure to view. The home features a generous...
4
Beds
2
Baths
2,288
Sq.Ft.
2003
Year Built
68
Days on Site
22042368
MLS
Great opportunity to put in some sweat equity to unlock all the potential of this property. Four bedrooms and two full baths along with roughly 2000 finished square feet offers plenty of room. This...
4
Beds
1
Baths
1,248
Sq.Ft.
9999
Year Built
7
Days on Site
22049527
MLS
Farmhouse style house on 0.50 acre corner lot with large garage and bonus room with wood fireplace. Main floor bedroom, bath and laundry. Public access to Thornapple River near by.
Pending
1006 Madison Ave SE Grand Rapids, MI 49507
4
Beds
2
Baths
1,540
Sq.Ft.
1884
Year Built
18
Days on Site
22048711
MLS
Here is a great opportunity to add value to a large home with detached garage, four bedrooms and two baths, original woodwork, enclosed front porch and tall ceilings

Tags: 

Ada Homes for Sale, Allegan Homes for Sale, Belding Homes for Sale,  Byron Center Homes for Sale, Caledonia Homes for Sale, Cedar Springs Homes for Sale, Comstock Park Homes for Sale,  Downtown Grand Rapids Condos for Sale, East Grand Homes for Sale, Featured ListingsForest Hills Homes for Sale, Grandville Homes for Sale, Grand Haven Homes for Sale, Grand Rapids Condos for Sale, Grand Rapids Homes for Sale, Greenville Homes for Sale, Holland Homes for Sale, Hudsonville Homes for Sale, Jenison Homes for Sale, Kenowa HIlls Homes for SaleKent City Homes for Sale, Kalamazoo Homes for Sale, Kentwood Homes for Sale, Lakefront Homes for Sale, Lake Michigan Homes for Sale, Lowell Homes for Sale, Newaygo Homes for Sale, Muskegon Condos for Sale, Northview School District Homes for Sale, Norton Shores Homes for Sale, Paw Paw Homes for Sale, Portage Homes for Sale, Rockford Homes for Sale, Sparta Homes for Sale, Tri County Homes for Sale, Vicksburg Homes for Sale, Walker Homes for Sale, Wayland Homes for Sale, Wyoming Home for Sale,
Zeeland Homes for Sale

Search for Condos

Byron Center Condos for Sale, Caledonia Condos for Sale, Downtown Grand Rapids Condos for Sale, Forest Hills Condos for Sale, Grandville Condos for Sale, Grand Rapids Condos for Sale, Jenison Condos for Sale, Kentwood Condos for Sale, Lowell Condos for Sale, Rockford Condos for Sale, Walker Condos for Sale, Wyoming Condos for Sale

Community Information

Ada Realtor, Belding Realtor, Byron Center Realtor, Caledonia Realtor, Cedar Springs Realtor, Comstock Park Realtor, East Grand Rapids Realtor, Forest Hills Realtor, Grandville Realtor, Grand Haven Realtor, Grand Rapids Realtor, Greenville Realtor, Holland Realtor, Hudsonville Realtor, Jenison Realtor, Kalamazoo Realtor, Kentwood Realtor, Lowell Realtor, Paw Paw Realtor, Rockford Realtor, Sparta Realtor, Walker Realtor, Wyoming Realtor, Zeeland Realtor,
Grand Rapids Foreclosures, Preferred Providers,  Blog

Post a Comment