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
2
Beds
2
Baths
1,254
Sq.Ft.
1900
Year Built
15
Days on Site
24008072
MLS
3
Beds
2
Baths
1,467
Sq.Ft.
1935
Year Built
36
Days on Site
24004944
MLS
3
Beds
2
Baths
1,214
Sq.Ft.
1949
Year Built
55
Days on Site
24002238
MLS
Pending
250 E 15th St Holland,  MI 49423
3
Beds
1F21/2
Baths
1,581
Sq.Ft.
1940
Year Built
41
Days on Site
24004212
MLS
3
Beds
2
Baths
816
Sq.Ft.
2003
Year Built
79
Days on Site
23145042
MLS
Pending
12071 Fernwood Ln Grand Haven,  MI 49417
4
Beds
3
Baths
2,356
Sq.Ft.
1999
Year Built
131
Days on Site
23139510
MLS
Pending
3598 Egner St NE Cedar Springs,  MI 49319
2
Beds
1
Baths
748
Sq.Ft.
1955
Year Built
121
Days on Site
23140948
MLS
Pending
120 Dunkirk St SE Grand Rapids,  MI 49548
2
Beds
1
Baths
912
Sq.Ft.
1956
Year Built
89
Days on Site
23143917
MLS
2
Beds
1
Baths
644
Sq.Ft.
1941
Year Built
90
Days on Site
23143729
MLS
4
Beds
2
Baths
1,800
Sq.Ft.
2000
Year Built
76
Days on Site
23145220
MLS
Pending
6718 Schmeid Rd Lakeview,  MI 48850
$129,900
Neighborhood: Honeymoon Heights
4
Beds
2
Baths
2,288
Sq.Ft.
2003
Year Built
79
Days on Site
23144988
MLS
3
Beds
2
Baths
1,512
Sq.Ft.
1998
Year Built
16
Days on Site
24007882
MLS

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

(616) 723-8729