Owning your home depends on what mortgage rates you qualify for – this will be a big part of knowing if a home loan is in the cards for you. There are a few ways to assess the reality of securing a mortgage, and one of the ways of doing this is calculating a rate. If it’s a good fit, locking that rate in while it’s still available is the best plan of action.
A mortgage rate is the interest you pay on your home loan. Your monthly payments go toward paying off the principal and the interest. The principal is how much you borrowed and the interest is the cost of borrowing. If you get a lower interest rate, more money each month will go toward paying off the principal, and you will make more efficient payments as time goes by.
Mortgage rates depend on a few different market factors. The federal government sets one main rate – this determines a number of other financial interest rates throughout the year. When it rises or falls, mortgage rates are typically affected.
On a more personal level, your credit score and your down payment amount affect mortgage rates at the time of purchase. Having an impressive credit score will qualify you for a lower interest rate. Likewise, being able to put more money toward the down payment of your loan will influence the calculation of what mortgage rate you qualify for.
To learn more about the mortgage rates you can expect, try our mortgage calculator – or call Midland Mortgage Corp. toll-free at 800-854-9484.