What Determines My Interest Rate?

Welcome friends!
Today we're discussing something that's been a HOT topic of discussion lately. Interest rates!

Interest rates have so many determining factors, some within your control and some not. That's why we're here to educate you on some of the things you'll need to be aware of/look for!

WITHIN YOUR CONTROL:

Loan Type

Your loan type can play a role in how your interest rate is calculated. Loan types include but aren't limited to: VA Loan, FHA, USDA, Conventional, Fixed Rate, Etc.
We recommend discussing with your lender on what type of loan would be best for your specific credit profile and situation!

Loan Term

Your loan term also affects your interest rate, similar to the way car payments and other loans do. This also affects the overall price of your mortgage.

Home Location

Home Location affects your interest rate because of things like the Mortgage Default risk, Early Repayment risk & local and state laws and regulations.

Credit Score

Your credit score plays a big part in your interest rate. Scores at 740+ have better odds at a low interest rate versus people with a 620 or lower.

Down Payment

Your down payment determines your interest rate because it affects the total purchase price of the home. 

Loan Amount

Loan amount plays a part in your interest rate much like your down payment does!

Now that you've learned what is within your control, let's touch on things out of your control. Things like Inflation, Job Growth & the Overall Economy fluctuate regularly and can play a part in your interest rate. 

If you'd like to speak with a lender to go over your options and what's available to you, give us a call and we can give you our trusted list of lenders! 

The Jurnee Luye Team