*disclaimer: Not all individuals will qualify for each loan type and/or scenario. Please contact me to see if you'd qualify for these loan products and/or discuss your options.
One of the many phrases you'll hear during the mortgage process is "lock in your interest rate". For some, this might be an easy phrase to figure out, and for others, it might be a new term that they want to learn more about.
Interest rates are an amount, represented as a percentage, that a borrower will need to pay on top of their loan principal. When the time is right, your loan officer will ask if you'd like to "lock in" an available rate. This rate will indicate the percentage of interest that you will pay throughout the lifetime of your loan.
What influences where rates are at? Well, there's a lot of factors that go into it. Although many people think that rates are determined solely by mortgage backed securities (MBS), the federal reserve, and the economic health of the country, there are personal factors that could affect your interest rate as well.
According to an article written by Victoria Araj at Quicken Loans, "Mortgage rates are determined by a combination of market factors such as overall economic health and personal factors such as your credit score, how you occupy your home and the size of your loan compared to the value of the property you’re purchasing."
Locking in a low interest rate is always a bonus when purchasing a home. If a low rate isn't available at the time of purchase though, don't worry. Refinancing at a lower rate may become an option in the future.
Contact me to learn more about what rates are currently available, and let's get you into your new home.
*disclaimer: Not all individuals will qualify for each loan type and/or scenario. Please contact me to see if you'd qualify for these loan products and/or discuss your options.
Brayden Ramsay NMLS #1997195
Momentum Loans NMLS #1606597
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