There are several factors that can influence the cost of your home mortgage rate. Different types of home loans, changing market conditions, your home’s value, and other factors will all affect your mortgage rate.
Mortgage rates are influenced by multiple factors, including the status of the economy, the bond market, borrowers’ credit scores, and borrowers’ down payments (to name a few). In a healthy global or national market, rates tend to increase. In a less-than-ideal market, they tend to decrease.
While you may not be able to control the market or the economy, you can control your down payment amount and your credit score. Lending companies adjust their base interest rates by considering the risk of lending to a borrower and the economy. Based on the perceived risk levels, lenders will adjust their rates accordingly.
Your best bet at lowering your interest rate is to maintain a high credit score and put down a high down payment.
Mortgage rates can vary by loan type and category. Here's a quick rundown.
Serviced by private mortgage lenders such as banks and credit unions, conventional mortgages:
Borrowers can often catch a break on their rate through a conventional loan because they're considered lower risk.
Determine how much home you can afford without breaking your budget.
These loans can have low mortgage rates and low down payment requirements, but lenders can increase the mortgage rates if they feel there’s a higher risk.
The shorter the mortgage term, the lower the mortgage rate will tend to be. Borrowers can set their terms based on their financial situations.
Interest is the calculated amount of the cost you have to pay to borrow money from a lender. This is usually expressed as a percentage of the amount you’ve borrowed. Here are the different types of interest structures you should know about:
|Home Loan Interest Types||Features|
Your personal mortgage rate will depend on multiple factors, a few of which include:
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|*Closing cost offer available to customers who apply for a new purchase loan. Only available for single family primary residences and existing Caliber customers. Credit provided at closing. The offer is nontransferable and can only be used by the intended recipient. Advertised discount can only be applied toward payment of closing costs up to a total amount of $1,000 subject to product underwriting guidelines. Any portion of the discount amount not used toward closing costs will be waived.
|**A pre-approval does not signify that all underwriting requirements have been met. Actual terms, including interest rate, are subject to change without prior notice and may vary based on eligibility criteria. All products are subject to credit and property approval. Not all products are available in all states or for all dollar amounts. Please contact Caliber for additional details.
|***The lock will be honored up to 75 days total. Your rate is protected for up to 30 days to shop for a home. Once you identify a property, your rate will be locked for an additional 45 days. All rate lock extensions are subject to Caliber’s standard rate lock extension fees All rate lock extensions are subject to Caliber’s standard rate lock extension fees. Not available for all loan products. Please contact Caliber for additional details.
|****Caliber agrees to pay the borrower the amount of the earnest money deposit (up to $5,000) following the home loan closing, if the loan does not close on or before the contract closing date due to a delay caused by Caliber. Void if there are any material changes to income or assets. Offer requires 30 business days from Caliber’s receipt of purchase contract to closing date. Other requirements include: Minimum 700 credit score, owner occupied purchase transaction. LTV and property type restrictions may apply. Available only through the Caliber Retail Channel. Payment may be subject to reporting for tax purposes. Please contact Caliber for additional details.|