• Loan-to-worth proportion: A keen LTV ratio compares the borrowed funds dimensions on property’s buy rate. Generally, increased downpayment will reduce your LTV and relieve the brand new lender’s exposure just like the amount borrowed try less. This can help you score a diminished interest rate.
• Mortgage size: Going for a smaller mortgage name, particularly fifteen years, reduces the lender’s risk just like the you happen to be paying down the loan more than a quicker schedule. There can be quicker chance which you can standard to your loan, so you may located a far greater interest.
• Loan kind of: The kind of mortgage you decide on may also change the speed you have to pay. FHA money and you may Virtual assistant funds keeps straight down mediocre home loan cost compared to some old-fashioned mortgages. Continue reading →