You may be wondering why you qualify for a different rate than your friends? Have you seen them post their low rate on social media, and wonder why you were quoted higher? There are many factors that can affect your rate, lets take a look:
A Mortgage loan rate is determined by several different pieces of data, and any variance in those data points can affect the rate.
- Credit Score – typically higher credit scores will deliver lower rates
- Timing– Each day the rates may change, if you saw a rate one day, and were quoted a week later, it’s likely the rates have fluctuated a bit.
- Loan Amount– The loan amount can affect what rate you qualify for
- Types of Loan– Depending on what type of loan you choose: FHA, VA, Conv, USDA, etc. the rates are different for each product
- Purpose– Depending on your loan purpose, either purchasing or refinance your loan rate may vary
- Term– The term of your loan has a large impact, oftentimes you can get a lower rate with a shorter loan term (ex: !5-yr vs. 30yr)
- Debt- If you have a higher debt to income ratio, it’s likely your rate will be higher than someone with a significantly lower debt to income ratio.
- Points- You can choose to pay for points in order to lower your rate
Again, rates are unique to you and your qualifying factors, they vary from person to person, and day to day, if you are interested in seeing what your rate could be, contact us today!