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Drew Mortgage - 5 Factors That Affect Your Mortgage Rates

"The housing market has become more competitive than ever. With interest rates on the rise and the inventory of homes at an all-time low, buyers are feeling more pressure than ever before. When you think about buying a home in today's environment, it's no wonder that many people are hesitant to make such a big decision. But with careful planning and budgeting, you can find your dream home for sale in this market.<br>

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Drew Mortgage - 5 Factors That Affect Your Mortgage Rates

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  1. 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. • Let’s know the 5 factors that affect your mortgage rates.

  2. 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.

  3. 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.

  4. 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.

  5. 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.

  6. 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.

  7. 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!

  8. DREW MORTGAGE BRANCH OFFICES: Drew Mortgage Associates 196 Boston Turnpike Road, Shrewsbury, MA 01545 Phone: (508) 753-1656 Peabody Mortgage Lenders Boston Mortgage Lenders 1 Mt Pleasant Drive Peabody, MA 01960 232 Commercial St.Boston, MA 02109 Phone : (978) 750-1080 Phone : (617) 523-3060

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