December 16, 2020

30 Factors That Influence Your Mortgage Rate

All banks and lenders use risk-based pricing models to determine the final interest rate of a loan.

Promotional interest rate offers found online or sent in the mail are often based on ideal scenarios that do not reflect the borrower’s actual eligibility.

No rate quote is final until all factors have been evaluated. In almost all cases, this requires a full loan application including a credit report and income documentation.

It's also important to remember that the loan with the lowest interest rate may not be the best or most affordable loan available.

The mortgage loan process is complicated, so it’s important to work with a quality lender like the Boles Group mortgage professionals at Bay Equity Home Loans in Gilbert.

Our team will put the time in to fully understand your financial history as well as your goals for the future.
Working with an experienced loan officer who knows you personally is the most reliable way to find YOUR best loan.

30 Factors That Influence Mortgage Interest Rate

  1. Loan Amount

  2. Loan Term

  3. Loan Purpose

  4. Loan to Value ratio (The loan amount expressed as a percentage of the value of the home.)

  5. Property State

  6. Property Type

  7. Occupancy

  8. Credit History

  9. Asset Verification

  10. Relocation

  11. Concessions

  12. Employment Status

  13. Co-Borrower

  14. Lock Period

  15. Underwriting System

  16. Loan Type

  17. Amortization

  18. Cash Out Amount

  19. CLTV (Combine Loan to Value)

  20. Property County

  21. Number of Units

  22. Credit Score

  23. Debt Tolerance Ratio

  24. Reserves

  25. Gift Funds

  26. Income Verification

  27. Employment Info

  28. Citizenship

  29. Mortgage Insurance

  30. Inclusion or exclusion of escrow