What Determines Mortgage Rates On Home Loans

* Mortgage Loan Program Is Another Factor On What Determines Mortgage Rates

The longer your mortgage term is, the higher your mortgage rates will be. A 15 year fixed rate mortgage will have a lower mortgage rate than a 30 year fixed rate mortgage loan term. Adjustable Rate Mortgages have lower mortgage rates than fixed rate mortgages.

* Occupancy Types Affect Mortgage Rates

Occupancy types will have an impact on your mortgage rates. An owner occupant and/or second home will have lower mortgage rates than an investment home.

* Property Type Impact Mortgage Rates

The type of property you purchase will have an impact on your mortgage rates. A condominium is considered a riskier mortgage loan than a single-family home. Mortgage rates on a condominium loan will be higher than a mortgage loan on a single family home.

* Loan Amount Impact Mortgage Rates

The mortgage loan amount will have an impact on mortgage rates.

– Smaller loan amounts of less than $100,000 will have higher mortgage rates than loan amounts of $200,000
– Also, conforming loan limits are at $484,350
– Many counties in California are located in high-cost areas
– The conventional loan limits may be $726,525
– High-cost areas in California, as well as other parts in the country where the loan amount exceeds the conforming limits of $484,350, will have higher mortgage rates

* Subordinate Financing Impact Mortgage Rates

If you decide to get a second mortgage the same time you get a first mortgage, you may get higher mortgage rates on your first mortgage.

For more information on this topic and/or other mortgage-related information, please contact us at Gustan Cho Associates Mortgage Group at 262-716-8151 or text us for faster response. Or email us at gcho@loancabin.com.

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