If you are considering buying a new home or refinancing your current one, there are a few things that may affect your interest rate. So, when you’re considering buying a home now or in the future, be sure to keep these in mind!
6 Factors that can affect your interest rate:
- Credit Score: Your credit score is one of the most important factors that will determine your rate.
- Property type: There can be pricing adjustments for condos and multi-family properties as opposed to a single-family purchase.
- Loan to Value: This is your down payment for a purchase or your equity for a refinance. The lower your loan to value (LTV), the better your interest rate may be.
- Rate and Term Refinance vs. Cash-Out Refinance: A Rate and Term Refinance has a loan amount that is enough to repay the balance of your existing mortgage. You may include all third-party fees, taxes, insurance, and interest into the loan amount. A Cash-Out Refinance, on the other hand, has a loan amount that exceeds your current mortgage balance. There may be a onetime fee for a Cash-Out refinance, depending upon your loan to value.
- Purchase vs. Refinance: There are times when lenders offer purchase specials, which allows Ability Mortgage Group, LLC, to offer even lower rates than we already do.
- Escrow Reserve: Paying your property taxes and homeowners insurance on your own, rather than having them included in your house payment may cost you an additional fee. Most lenders charge a onetime fee for the impound waiver.
If you’d like to discuss your individual situation as you prepare to purchase in Virginia or North Carolina, please, feel free to call my cell at 757-652-3999.
Pat Bowler | Market Leader & Mortgage Consultant
575 Lynnhaven Parkway Suite 101 | Virginia Beach VA 23452 | 757-652-3999
Movement Mortgage, LLC is an Equal Housing Lender. NMLS # 39179 | 877-314-1499. Movement Mortgage, LLC is licensed by the “Virginia Bureau of Financial Institutions” Lic # MC-5112. Interest rates and products are subject to change without notice and may or may not be available at the time of loan commitment or lock-in. Borrowers must qualify at closing for all benefits. “Movement Mortgage” is a registered trademark of the Movement Mortgage, LLC, a Delaware limited liability company.
NMLS license number 210953