Are you searching for the best mortgage interest rate on a home loan or refinance? If you are, be prepared to evaluate the following things…
- Your qualifications. Lenders use your income and credit history to determine how risky you are as a borrower. More risk means a higher interest rate.
- The loan type. Loans with delayed repayment (such as interest-only mortgages) have higher interest rates.
- The loan amount. High-dollar loans are more expensive that low-dollar loans. Loans in an amount greater than 80 percent of a home’s value are also more expensive.
- Debt-to-income ratio. This is a formula used to qualify borrowers. The ratio expresses, as a percent, the amount of monthly debt payments in relation to the amount of monthly income of a borrower(s).
- Different mortgage lenders. Different lenders offer different interest rates. At Utah Financial, we work with over 100 different lenders across the country, so we can and will find you the best interest rate possible.
- There’s also one big factor that you can’t control-the economy. Interest rate changes related to the economy are often gradual.
Mortgage interest rates fluctuate all day, every day.
