Understanding the Key Factors That Affect Your Mortgage Interest Rate 

                                               

When you initially start shopping for a home mortgage, you may be drawn to advertisements for ultra-low interest rates. These may be rates that seem too good to be true, and you may gladly contact the lender or mortgage company to complete your loan application. However, the unfortunate truth is that all too often, mortgage applicants are unpleasantly surprised and even disheartened to learn that they do not qualify for the advertised interest rate. By learning more about the factors that influence your interest rate, you may be able to structure you loan in a more advantageous way. 


Your Credit Rating

                                                 


One of the most important factors that influence an interest rate is your credit score. Lenders have different credit score requirements, but most have a tiered rating system. Those with excellent credit scores qualify for the best interest rate, and good credit scores may qualify for a slightly higher interest rate. Because of this, you may consider learning more about your credit score and taking time to correct any errors that may be resulting in a lower score.

The Amount Of Your Down Payment

                                                   


In addition, the amount of your down payment will also play a role in your interest rate. The desired down payment may vary from lender to lender, but as a rule of thumb, the best home mortgage interest rates are given to those who have at least 20 to 30 percent of funds available to put down on the property, and this does not include subordinate or secondary financing. If you are applying for a higher loan-to-value loan, you may expect a higher interest rate.

The Total Loan Amount Requested

                                                  

 In addition, the total loan amount will also influence the rate. There are different loan programs available, but one of the biggest differences in residential loans is for very large loan amounts. The qualification for a jumbo loan will vary for different markets, but these loans qualify for different rates than conventional loans with a smaller loan amount.

                                               

While you may be able to use advertised interest rates to get a fair idea about the rate you may qualify for, the only real way to determine your mortgage rate will be to apply for a loan and to get pre-qualified. You can contact a mortgage lender today to request more information about today's rates and to begin your pre-qualification process.

If you do not have a lender of choice, I have a preferred Lender I use, that can offer every type loan out on the market, even 0 down payment, grants, FHA, KHC etc. Call me and I can hook you up, at no cost to you and you can even handle over the phone and never leave your home. For more information, call me and I would be happy to help. Karen Rodriguez, Associate Broker, 502-643-2255. (Call and I will hook you up to discuss your options over the phone with my preferred Lender, no cost to you, then I can start sending you homes fitting your wants and needs and you never leave your home, until you find the homes that peak your interest, then I will set up appointments for you to check them out and see if you like them or not.) It doesn't get much easier than that. I am here to help.

 

 Message from Karen:

If you are thinking of Buying, click on the button below (Click here to search ALL listings) and start searching all the available homes for sale in ALL of Greater Louisville and surrounding counties. If you find anything of interest and would like to check it out, just call, text or email me and I would be happy to set up an appointment for you to check out the property. 

If you are thinking of selling, call me for  a FREE home evaluation in your neighborhood, from staging, pricing, housing values, interest rates, how appraisers are valuing properties, now that the guidelines have changed. I would love to sit down and talk with you. Just call me and let me know how I can help with your real estate needs, buying or selling or both.  I give exclusive representation.  If you are not sure whether you want to sell for fear of not finding that perfect larger home, click on the Search All Area Listings properties below and start searching the areas and see what is out there. I do have a list of contractors whether you decide to remodel or purchase or both.  I can supply you with a list of contractors. I would be honored and happy to help you. 

Click Here!            Click Here!      

 

This Blog was written by:

Karen Rodriguez, Associate Broker

Notary, ABR, AHWD, CRS, e-Pro, GRI, SFR

Cell: 502-643-2255

Email: Soldbyk@gmail.com

Website:  Soldbyk.com