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FACTORS DETERMINING REFINANCE MORTGAGE RATES
What factors determine a REFINANCE mortgage rate other than an individual’s credit score?
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Many things lead to a refinance mortgage rate other than credit score. A few of them are the loan-to-value (LTV) ratio, which, if lowered, can get you a better rate:
Credit Score: Credit scores are the biggest factor in pricing mortgage rates.
The loan amount itself: Larger or smaller loans may impact rates.
Property type: Owner-occupant homes have the lowest rates. Investment properties and condos may have higher rates.
Loan term: Shorter terms generally offer lower rates.
Occupancy status: Primary residences typically have lower rates.
Debt-to-income (DTI) ratio: ng on mortgage rates. Lower debt-to-income ratios. Lower numbers result in better rates offered by lenders and better market conditions. Economic factors and interest rate trends also affect what lenders charge for lending money since they affect their overall risk.