Mortgage rates differ depending on a variety of factors, but one thing is for sure, everyone wants to pay the lowest interest rates possible for the mortgage they took. Knowing these factors go a long way in preparing for your purchase.
The rates are determined by:
- Your credit score- One of the factors that could help you get a lower interest rate is your credit score. The higher it is, the lower the interest rates. It is this credit score that determines just how reliable you are when it comes to repaying your loan.
- Location- Some lenders determine rates based on where you will be purchasing your property.
- Down payment- The larger the down payment you make, the less the interest rate is for you.
- Loan term- The shorter the mortgage repayment term, the lower the interest rate
Different institutions use different mortgage calculators to determine your interest rate, and you can use them to estimate just how much you will be required to pay every month. In most cases, you will need the following details to calculate your mortgage:
- Property price
- Down payment
- Loan term
- Taxes on the property