If you’re looking to settle down and start a family, you’ll need a house to set the foundation for your exciting future. However, you don’t have to wait until you’re ready to buy outright. You can kick-start your dreams by securing a mortgage. As you live off of this home loan, you’ll have to pay an interest rate. It helps to minimize this expense as much as possible. To find out which factors will most drastically affect your mortgage interest rate, consult the following list.

3 Factors That Impact Your Mortgage Rate

1. Credit Score

Like many other large purchases, a home loan lender will look to an applicant’s credit score as a quick indicator of their liability. If you’ve been working to raise or maintain your high credit score, you’ll probably be treated to lower interest rates on your mortgage. Those with more impressive scores are deemed more trustworthy and more likely to pay back their debt on-time from the lender’s point of view. 

2. Down Payment

While you might not have enough saved to purchase your house outright, you’ll still have to provide a down payment before you borrow the rest from the lender. However, it’s important to know that you can influence your future rate by saving up for a larger down payment. The more you pay upfront, the lower your interest rate will be. This is because the lender is taking responsibility for a smaller fraction of the property’s value.

3. The Home Itself

Even the property you choose to take out a mortgage on could impact the loan’s interest rate. For example, the state you live in could abide by different interest rate standards than neighboring states. The price of your home and the loan you need to take out could also affect how much interest you’ll pay over time. Some lenders charge higher interest rates for loans that are unusually small or large.

If you’d like to learn more about how to find a mortgage that works for your family, get in touch with Dan Main of St. Peters, MO. For over two decades, he has helped aspiring property owners get a leg up on the competitive market, offering everything from FHA and VA loans to adjustable rate-mortgages and jumbo loans. To learn more about your options, visit the website. You can also call (636) 284-4144 to schedule an appointment with this trusted loan officer. 

Dan Main: NMLS # 502036
Flat Branch Home Loans NMLS # 224149
947 Waterbury Falls Dr
O’Fallon, MO 63368
This is for informational purposes only and not an offer to lend or extend credit.