There are many factors that go into determining your mortgage interest rate when you purchase a home, some of which are the following:

Down Payment Amount

Credit Score

Debt-to-Income Ratio

Post Closing Money Reserves

Additionally, the type of loan that you chose will determine your interest rate.

  • A 30-Year Fixed Loan has a lower payment that a 15-Year Fixed Loan, but it comes at a higher rate.
  • A 15-Year Fixed Loan has a higher payment than a 30-Year Fixed Loan, but it is at a lower rate.
  • 3,5,7 and 10-Year ARMs and Interest Only Loans typically have a lower interest rate and payment. However, they do no not have the security beyond their respective fixed periods.

The two questions that you should ask yourself when choosing a mortgage are:

  1. Can and do I want to afford this payment obligation?
  2. Does the fixed amount of time of my mortgage match my timeline for the home?

Get your Rate Today for Your New Home Purchase