Lots of things go into your interest rate quote.
Let’s go through the different factors that can affect your interest rate.
- Credit Score: The higher your credit score, the lower your interest rate will be in most cases.
-Loan Type: Different kinds of loans have different interest rates. Generally speaking, FHA and VA loans will have lower interest rates than a conventional 30-year loan.
-Loan to Value: If you only need a $100,000 loan to buy a $300,000 home, you’ll get a better interest rate than you would if you needed a $275,000 loan for the same home.
-Property Type: Some properties, like condos and vacation rentals, are seen as a larger risk to the lender. The riskier the loan for the lender, the higher the interest rate will be on your end.
Each of these factors impact your interest rate quote in different ways. Some of these things you have control over, while you don’t have control over others. Want to talk more about interest rates? Send me a DM and let’s chat!