Exactly How is My Interest Rate Determined?
LESLIE WATERS HEIMER
Providing a high touch lending experience for Orlando, FL.
We all know that interest rates change daily (and in some cases, multiple times throughout the day) and are dictated by the larger macro-economic marketplace. In today’s volatile market, usually the very first question asked (much to the chagrin of Lenders who understand there is so much more to the mortgage loan) is how can I ensure I get the lowest rate? Every Borrower wants the lowest rate. Period. We want to pull back the curtain of mystery and share what exactly determines the interest rate calculation.
Interest rates are a measure of risk and the Lender or Investor’s way to offset the risk of non-repayment of the loan. In that vein, many key factors are evaluated to measure the risk analysis of each specific loan scenario.
“In addition to your credit score and repayment history, there are many other factors taken into consideration.”
It is more than just your credit score: It is important to understand what factors are considered in the actual interest rate. In addition to your credit score and repayment history, there are many other factors taken into consideration including: down payment, loan terms, debt to income ratio, purchase price, loan program and even in some cases the geographic location of the subject property.
Comparing Apples to Apples: Shopping for a mortgage can be tricky. If you do your homework up front (know your credit score, have a plan for your down payment, get references for a reputable Lender) then you should be well equipped to finalize your decision for your home loan financing. Often bringing one rate quote to another Lender can overlook any buy down points, or discounts that may be charged in exchange for that lower rate. It is important to work with someone you trust.
Our Loan Advisors at American Liberty Mortgage are incentivized to get you the lowest possible rate, to ensure follow on business and referrals. We want you bragging to your neighbor and your co-worker about your rate, so they will call us for their financing! Our licensed, experienced Lending Professionals are the best in the business. Leslie Heimer was named 2018 Most Powerful Women in Banking by National Mortgage Professional Magazine and completed her MBA in 2017, with 15 years’ experience in the mortgage lending. The Lending Professionals at American Liberty Mortgage are experienced, credentialed and strategic financial professionals that are committed to building the very best mortgage for your long term financials goals.
“Shopping for a mortgage can be tricky. If you do your homework up front, then you should be well equipped to finalize your decision for your home loan financing.”
Want new articles before they get published?
Subscribe to our Awesome Newsletter!
Join our mailing list to receive the latest news and updates from our team.