Loan-to-well worth ratio: A keen LTV ratio measures up the loan proportions with the property’s pick price. Essentially, a top advance payment usually decrease your LTV and reduce the lender’s risk since the loan amount is actually faster. This should help you rating a diminished interest rate.
Financial length: Choosing a smaller mortgage name, eg 15 years, reduces the lender’s risk while the you are paying off the mortgage more than an excellent shorter timeline. There is shorter exposure that you’ll standard to the loan, so you may discovered a better rate of interest.
Financing method of: The sort of mortgage you select may also impact the price you only pay. FHA loans and you will Va money features lower average financial prices compared to a few conventional mortgage loans.
