- Banks and other lenders offer varying rates for different types of mortgages. Fixed rate, adjustable rate, jumbo, and ballon home loans are each calculated separately.
- Interest rates fluctuate daily for all kinds of loans, including mortgages. According to Mortgage News Daily, the 90-day US Treasury bill is the benchmark that helps determines rates.
- Your credit score play a significant role in determining your lending rate. Lenders offer their best rate to borrowers would very good or excellent credit, while higher risk borrowers may only qualify for sub-prime loans, which carry a higher interest rate.
- If you are shopping for a home loan, you can request a rate lock from your lender to guarantee your mortgage lending rate for a certain number of days.
- Obtain copies of your credit reports and credit scores before shopping for a home loan. You may be able to obtain a lower interest rate by cleaning up your credit first.
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