Hello Southern Lakes Members! Welcome back to Mortgage Monday with me, Shelly, your local Mortgage Loan Officer at your local lender, Southern Lakes Credit Union! Today’s topic is: Factors that affect your interest rate
You may have seen really low interest rates posted online then when you go to apply for a mortgage, you get a different rate. Have you ever wondered why that would be? Here are some typical factors that can affect your interest rate:
1) Credit Score – To get the best rate keep your credit score as high as possible. Ideally you will want to aim for a 740 or better.
2) Loan to Value – The lower your loan to value the less impact it will have on your qualifying rate.
3) Cash Out Refinance – If you are refinancing and are increasing the amount you owe by cashing out some of your equity in home, this could potentially increase your rate.
4) Type of property – The type of property you are financing could also affect your interest rate. Second homes, investment properties, multi-unit properties are all examples of properties that could have a mortgage with a higher rate.
Do you have additional questions regarding mortgages rates? I invite you to call me directly at (262) 694-1600 ext. 604.