5 Factors That Affect Your Mortgage Rates | Drew Mortgage

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• Introduction
• Mortgage interest rates are the costs paid by the
  borrower to the lender for borrowing money for a
  mortgage.
• These are the most important numbers for
  prospective home buyers.
• They tell you how much you'll be paying on your
  monthly mortgage payments.
• The interest rates may vary depending on various
  factors.
• Lets know the 5 factors that affect your
  mortgage rates.

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• CREDIT SCORE
• A credit score represents a person's
  creditworthiness.
• A high credit score indicates that the person is
  deemed as "creditworthy".
• A low or bad credit score indicates that the
  person is less likely to repay
• Some lenders use your credit score to set your
  interest rate on loans, mortgages, and other
  types of borrowing.
• Bad or low Credit Scores can lead to higher
  interest rates on loans.

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• DOWN PAYMENT
• Down payment can affect the interest rates that
  you will be charged.
• The size of the down payment is a key variable in
  determining whether a loan is classified as a
  high-risk or low-risk credit.
• Mortgage lenders in Massachusetts want to know
  that they will be able to recoup money if a
  borrower defaults on their loan.
• A high-down payment is typically interpreted as
  less risk by lenders and they may offer lower
  interest rates on these loans.

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• INTEREST RATES
• Interest rates are calculated on the basis of the
  type of loan you have.
• Fixed interest rates have a set percentage that
  is charged annually.
• Variable interest rates fluctuate with the market
  and can go up or down.
• If you want to save money on your monthly
  payments, it is best to take out loans with lower
  interest rates than those with higher ones.

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• LOAN TYPE
• Loan type can affect your interest rates.
• An FHA loan is a mortgage insured by the Federal
  Housing Authority.
• In general, these loans offer lower down payments
  and low-interest rates.
• VA loans don't require a down payment.
• The USDA also has low down payment requirements,
  but it is only available to rural residents with
  low incomes.

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• PROPERTY LOCATION
• The home location can affect your mortgage rates.
• It determines the rate of interest that you will
  be paying for your home loan.
• It also determines the type of home loan you will
  qualify for.
• The people living in metro cities have a higher
  demand for homes
• Also, the property value and geographical risk
  play a role here.

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• THE BOTTOM LINE
• Mortgage rates are tied to the basic rules of
  supply and demand.
• If you are looking for a mortgage at a lower
  rate, it is best to wait until you can get one.
• Feel free to connect to Drew Mortgage
  Associates, one of the leading Massachusetts
  mortgage companies for competitive mortgage
  rates.
• We are here to make your home buying journey
  blissful with hassle-free mortgage approvals and
  processing. Get in touch today!

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DREW MORTGAGE BRANCH OFFICES Drew Mortgage
Associates 196 Boston Turnpike Road, Shrewsbury,
MA 01545 Phone [phone] Peabody
Mortgage Lenders
Boston Mortgage Lenders 1 Mt
Pleasant Drive Peabody, MA 01960
232 Commercial St.Boston, MA
02109 Phone [phone]
Phone
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