We’re here to provide the guidance and insight into mortgage rates you need.
When you buy a home, getting the best mortgage rate is one of the most critical factors for ensuring long-term savings. This is because mortgage rates directly impact the monthly payments homeowners make and the overall cost of the home loan. Having a firm understanding of your mortgage rate and its impact is essential, but it’s not always easy to work through the ins and outs of the mortgage world. Thankfully, our team at Steve Owens Home Loans – MIG is here to provide the insight and guidance you need.
What Are Mortgage Rates?
Mortgage rates are the percentages that lenders charge borrowers so that they can purchase a home. They can be fixed or adjustable, which will impact how much you end up paying over the life of the loan. Even a small change in your mortgage rates can dramatically impact the end amount that you pay for your home.
Determining Factors for Mortgage Rates
There are a few key factors that determine your mortgage rate. They include:
- Your Credit Score: Your lenders will use your credit score to gauge your reliability as a borrower. In general, the higher your credit score, the lower your mortgage rate. This is because a high credit score indicates that you’re less likely to default on your loan.
- The Loan Amount: How much money you’re borrowing will also impact your mortgage rates. For example, borrowers who take out a loan that is relatively high compared to the value of the house (high loan-to-value ratio) are often seen as having higher risk, resulting in higher mortgage rates.
- Your Down Payment Amount: Putting up a larger down payment reduces the loan-to-value ratio we mentioned above, which can help lower your mortgage rate. Lenders are typically more willing to offer favorable value when they can see that you are willing to put in a greater upfront investment.
These are just a few of the factors that impact your mortgage rates. For more information or to schedule a consultation with our mortgage experts, reach out to our office today. We serve the Asheboro, North Carolina area, and we look forward to meeting with you.
At Steve Owens Home Loans – MIG, we provide the information about current mortgage rates for customers in Greensboro, Thomasville, Lexington, Asheboro, Mebane, Graham, Burlington, Lewisville, Clemmons, Summerfield, Oak Ridge, Winston-Salem, Kernersville, and High Point, North Carolina.
