In addition to your Credit Score, we may will use the following factors to determine your interest rate:
Home Location: Interest rates can differ depending on what state or county you live in.
Down Payment: If you can comfortably put down 20 percent or more, do it. A larger down payment in some cases can lead to a lower interest rate.
Loan Term: Shorter term loans will generally have lower interest rates and lower overall costs, but may result in higher monthly payments in order to pay off the loan in fewer months.
Loan Type: Some borrowers may qualify from loan programs through the Federal Housing Authority (FHA), U.S. Department of Agriculture (USDA), or Veterans Affairs (VA). Qualifying for any of these programs may affect your mortgage eligibility, down payment, interest rates, and other costs.
Interest Rate Type: Mortgages have adjustable or fixed interest rates. In a fixed rate mortgage, the monthly payments remain the same over the life of the loan. Adjustable rate mortgages usually have lower initial interest rates, but the mortgage payment will vary each period as the market changes.
Points: Mortgage points, also known as discount points, are upfront costs paid directly to the lender in exchange for a lower interest rate. Paying for points is often a good choice for people who plan to live on their property for a long time.
If you are seeking a mortgage or have questions about current loan rates, make an appointment with one of our loan consultants or apply on line.