Mortgage rates are currently at record lows. As a result, loan applicants are able to save money on their interest expense over the life of the financing. With rates mortgage being so favorable, many individuals are moving forward with a home purchase or refinance.
A mortgage rate reflects the price that a lender is willing to charge on a specific loan product. It takes into consideration a borrower’s credit worthiness, history and score. Low mortgage rates are commonly available for applicants that have a good credit rating, pay their bills on time and do not have serious delinquencies.
A mortgage rate represents the profit that the bank needs to make on the note, as well as the risk expense associated with the borrower. When applicants are credit worthy, banks view them as being less risky for default or late payment.
What Can Impact Your Mortgage Rate?
There are many factors that can impact your mortgage interest rate.
Global economic factors, government bond rates, and the stock market play a role at a macro level and are beyond your individual control – but what about the micro level?
What can you do to get the best rate?
Factors such as: credit history, loan to value, amount, term, type of interest rate (adjustable vs. fixed), purpose of the loan (purchase vs. refinance), loan program selected – amongst others – can dramatically impact your rate scenario.
It’s impossible to provide an accurate rate quote without diving in to your individual situation. Please call us at (707)773-4200 to speak with one of our experienced lenders.