Denver Realtor

Every Home Deserves a KILTED Closing

  • Buy
    • Search for Homes
    • Mortgage Interest Rates and Mortgage Payment Calculator
    • Renting vs. Buying
    • Relocation
    • Rent-To-Own
    • My Listings
    • Resources for Buyers
  • Sell
    • Request Home Valuation
    • Resources for Sellers
    • Divorce and Selling Your House
  • Rent
  • Invest
    • Rental Rate Analysis
  • Communities
    • Denver Neighborhoods
    • Search Denver Homes
    • Search Arvada Homes
    • Search Aurora Homes
    • Search Broomfield Homes
    • Search Centennial Homes
    • Search Englewood Homes
    • Search Greenwood Village Homes
    • Search Highlands Ranch Homes
    • Search Lakewood Homes
    • Search Littleton Homes
    • Search Lone Tree Homes
    • Search Parker Homes
    • Search Westminster Homes
    • Search Wheat Ridge Homes
    • Salida Real Estate
  • Blog
    • Buying a Home
    • Selling a Home
    • Real Estate Market
    • Denver Housing Market
    • Financing a Home
    • Real Estate Investing
    • Renting
    • Homeownership
  • About
    • Kilted Closings (photos)
    • Why Choose Scott
    • Client Testimonials/Reviews
    • eXp Realty Colorado
  • Contact
    • Join eXp Realty
You are here: Home / Real Estate / Four Things That Help Determine Your Mortgage Rate

Four Things That Help Determine Your Mortgage Rate

October 12, 2022

Four Things That Help Determine Your Mortgage Rate

If you’re looking to buy a home, you probably want to secure the lowest interest rate possible for your home loan. Over the last couple of years, that was easier to do as the housing market saw record-low mortgage rates, but this year rates have risen dramatically.

If you’re looking for ways to combat today’s higher rates and lock in the lowest one you can, here are a few factors to focus on. Since approval opportunities can vary, connect with a trusted lender for customized advice.

Your Credit Score

Credit scores can play a big role in your mortgage rate. Freddie Mac explains:

“When you build and maintain strong credit, mortgage lenders have greater confidence when qualifying you for a mortgage because they see that you’ve paid back your loans as agreed and used your credit wisely. Strong credit also means your lender is more apt to approve you for a mortgage that has more favorable terms and a lower interest rate.”

That’s why it’s important to maintain a good credit score. If you want to focus on improving your score, your trusted advisor can give you expert advice to help.

Your Loan Type

There are many types of loans, each offering different terms for qualified buyers. The Consumer Financial Protection Bureau (CFPB) says:

“There are several broad categories of mortgage loans, such as conventional, FHA, USDA, and VA loans. Lenders decide which products to offer, and loan types have different eligibility requirements. Rates can be significantly different depending on what loan type you choose.”

When working with your real estate advisor, make sure you find out what’s available in your area and which types of loans you may qualify for.

Your Loan Term

Another factor to consider is the term of your loan. Just like with location and loan types, you have options. Freddie Mac says:

“When choosing the right home loan for you, it’s important to consider the loan term, which is the length of time it will take you to repay your loan before you fully own your home. Your loan term will affect your interest rate, monthly payment, and the total amount of interest you will pay over the life of the loan.”

Depending on your situation, the length of your loan can also change your mortgage rate.

Your Down Payment

If you’re a current homeowner looking to sell and make a move, you can use the home equity you’ve built over time toward the down payment on your next home. The CFPB explains:

“In general, a larger down payment means a lower interest rate, because lenders see a lower level of risk when you have more stake in the property. So if you can comfortably put 20 percent or more down, do it—you’ll usually get a lower interest rate.”

To learn more, connect with a lender to find out the difference a higher down payment can make for your new mortgage.

Bottom Line

These are just few factors that can help determine your mortgage rate if you’re buying a home. The best thing you can do is have a team of professionals on your side. Connect with a local real estate professional and a trusted lender so you have the expert advice you need in each step of the process.

Find Your Next Home

[showcaseidx shortcode encountered an error]

home buyers guide
FREE Buyers Guide
Please call/text/message/email me to share your thoughts about your next home and I’ll identify your most important next step.
If you’re reading this late at night and want to start now, first send me an email, then focus on these items of the home buying process: 1) Download my Home Buyers Guide to learn general information (if you’re into doing your own research). 2) Talk to a quality mortgage lender and get pre-approved for financing. 3) Search for homes currently on the market to get a feel for the types of homes, locations, and price points available. 4) Read my Denver real estate blog (updated daily!) to further educate yourself about the market and relevant topics for home buyers. And of course, when in doubt, just call me and I will help you with each step of your journey.

Create Your Free MLS Home Search Account »

When It Is Time To Sell Your Home

guide for home sellers
FREE Sellers Guide
Find out how much your home is worth and download my free guide for home sellers for helpful information. It is important to choose a REALTOR® who can develop an effective marketing strategy for your property, negotiate well on your behalf, and has the knowledge to provide an accurate market comparison so you can determine the right asking price. The market changes each week and your asking price is an important component of your selling strategy. I am here to listen and serve. I will share how your home stacks up against the competition, or how we can position your property to sell quickly and for a good price, or talk through any unique circumstances or goals. Contact me today to start a discussion…

Get A Quick Home Valuation »

My Denver real estate blog is updated daily with useful information for home buyers and sellers…
Real Estate Housing Market | Buying a Home | Selling a Home | Financing a Home | Renting | Homeownership | Investing

SHARE THIS:

  • Email
  • Print
  • Pocket
  • Facebook
  • Twitter
  • LinkedIn
  • More
  • Reddit
  • Tumblr
  • Pinterest
  • Telegram
  • WhatsApp
  • Skype

Related

Topic: Real Estate

SUBSCRIBE: Receive a Weekly Digest of This Blog in Your Email Inbox

/ ( mm / dd )
(No SPAM. Just good content. Safe unsubscribe anytime.)

DENVER REAL ESTATE & HOUSING BLOG

scott rodgers realtor blogHi, I'm Scott Rodgers, a native of Denver and a professional Realtor serving the metro Denver metro area. In short, I help people buy and sell homes, and have built a bit of a reputation wearing a kilt to my clients' closings.

Follow this daily blog on the Denver housing market and real estate related topics for highly relevant information for home buyers and sellers.

And should you or someone you know be in the market to buy or sell a home, please reach out to me to discuss what you are looking to do. I adapt to all my clients' needs and strive to provide you with The Peak Results.

Find Your Next Home


Create Your Free Account
Get instant access to new inventory. Save searches and receive email alerts on new homes, price reductions, and status changes.
OR
Facebook
Google
Have an account?
Sign in

❖ Certified Luxury Home Marketing Specialist Designation Awarded 2023
❖ Million Dollar Guild Awarded 2023
Luxury Award 2023 - CHLMS Guild

Nextdoor.com Favorite Agent Cory-Merrill Denver

FIVE STAR PROFESSIONAL AGENT 2022 Scott Rodgers

Scott Rodgers 2021 Top Agent Award

Denver Real Estate Blog

  • You May Not Need as Much as You Think for Your Down Payment [INFOGRAPHIC] February 3, 2023
  • Experts Forecast a Turnaround in the Housing Market in 2023 February 2, 2023
  • Should You Rent Your House or Sell It? February 1, 2023
  • Lower Mortgage Rates Are Bringing Buyers Back to the Market January 31, 2023
  • Where Will You Go If You Sell? You Have Options. January 30, 2023
  • Homeownership Boosts Your Net Worth Through Equity [INFOGRAPHIC] January 27, 2023
  • REcolorado MLS Ranks Scott Rodgers 2022 Top-40 Agent by Residential Sales, Top-5 for Denver County. January 26, 2023
  • Moving Now May Be A Better Option Than This Spring January 26, 2023
  • Why You Shouldn’t Fear Today’s Foreclosure Headlines January 25, 2023
  • The 3 Factors That Affect Home Affordability January 24, 2023

Search Homes on Your Mobile

Visit www.ThePeak.com from your mobile phone and click the button below to search the MLS for homes with the best mobile user experience: fast, accurate, and easy to use.
Download App

Giving Back

Join my team on Kiva.org and help communities grow and prosper at the most foundational level: the individual, the family, the local business. It’s our way of spreading goodwill around the world. Participating is easy and involves small $25 loans.

  • Loans: 350+
  • Total Lent: $9,000+
  • Countries: 61+

Scott Rodgers

Real Estate Broker, REALTOR®, MRP
Bungalow Living Brokerage Inc
303-242-8831 (m)

Welcome to The Peak Home Source at ThePeak.com

  • Email
  • Facebook
  • Instagram
  • LinkedIn
  • Twitter
  • YouTube
the peak home source with scott rodgers - denver

Why Choose Scott Rodgers as your Realtor »     Write a Review / Recommend Scott »

18,760
Search homes in Denver, Centennial, Littleton, Lakewood, Englewood, Greenwood Village, Aurora, Lone Tree, Highlands Ranch, Parker, Wheat Ridge, Arvada, Westminster, Broomfield.
Copyright© 2016–2023 · The Peak Home Source with Scott Rodgers · Denver Realtor · MLS · Buy · Sell · Rent · Denver Real Estate Blog · Privacy · ToS

Marketing efforts are not intended to solicit properties listed under written agreement with licensed real estate brokers.
Website content is for informational purposes only. For professional advice or service, engage a licensed real estate broker, loan originator, attorney, or CPA under written contract.
Part of the real estate listing content on this website comes from the IDX program of REcolorado.

Go to mobile version