be cautious!
7 things that will drastically affect your mortgage rate
Andre Jackson Everybody craves a low mortgage rate because no one would love to pay through the nose for any services or products. It is why when people are searching for a home mortgage; they tend to ask a dozen questions so that they can pick a mortgage lender that has the lowest possible interest rates.
But, in reality, no two people pay the same mortgage rate. Mortgage rates tend to change regularly, and it is because of the reasons identified below:
1. Credit score
One of the essential things that can influence your mortgage rate is your credit score. This means that if you have a high credit score, you are most likely to get an interest rate that would be lower to someone whose credit score is lesser than yours. Mortgage lenders tend to use your credit scores to determine how reliable you would be when repaying your mortgage loan. Information like credit history, which includes your loans, credit cards, and repayment history determine what your credit score would be.
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2. Property location
The location of the property also determines what mortgage rate you would be getting. The laws and policies of each state government could help to either increase or decrease the amount of rate you would be paying on your mortgage. Your mortgage rate would also be greatly depending on how urban or rural the area your property is located in.
3. Inflation
Inflation is pretty much when the price of goods generally rises over a period which leads to a continued fall of purchasing power of money. Mortgage lenders have to keep this in mind when they dish out mortgage loans to people. They have to keep the interest rate l
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