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