When it comes to buying a home, several factors can determine your interest rate. Here are the top four:
➡️ Loan Type - Different loan types come with varying interest rates - such as fixed, variable, or adjustable, and the term.
➡️Credit Score - A higher credit score of over 680 typically means a lower interest rate.
➡️Down Payment - Putting a larger down payment (such as 35%) or having an insured mortgage (less than 20% down payment) on your home can potentially lower your interest rate.
➡️Loan Amount - Larger loan amounts on properties valued over 1m can mean higher interest rates, as they present a greater risk to the lender. Understanding these factors can help you get the best rate possible!