You may be wondering why your interest rate is different from your friend’s, even though you both locked the rate at the same time. There are many factors that go into determining the interest rate.

First is your credit score. The higher the score, the better the rate. Here is a blog we wrote on how credit card balances can affect your score: https://counselmortgagegroup.com/credit-score-tips-credit-cards/ If you are looking for some more tips on getting your credit score up, give us a call, we can help.

Amount of down payment is another factor lenders use to determine the interest rate. The interesting point here is that a larger down payment may not always result in a better rate. Sometimes you can get the same or better rate if you put less than 20% down because there is mortgage insurance which lays off some of the lender’s risk on the loan.

The type of property is another factor. The interest rate could be different depending on if you are purchasing a condo, single family residence, manufactured home, or multi-family property.

The occupancy type is also a factor. A primary residence rate is better than a second home or investment property rate.

The rate can vary depending on the type of loan, e.g. conforming, jumbo, FHA, VA, USDA, and private money.

We are mortgage brokers and shop lenders everyday to find the best deal for you. Give us a call, we can help.