What Affects Mortgage Rates?

WHAT AFFECTS MORTGAGE RATES Credit score plays a major role in determining loan rates-the higher the credit score, the lower the rate. Those with high credit scores can lower their rate by a full percentage point. 10% That can equate to savings of up to ten percent for each monthly payment. 20% Larger down payments (of 20 percent or more) can also lower the interest rate of a mortgage loan. 15 30 The length of the loan also affects mortgage rates. 15-year loans have much lower interest than 30-year loans. FOR SALE SOLD The supply and demand shift of the housing market can also affect mortgage rates. A high supply typically yields lower rates. Slower economic growth and low inflation tend to lower average national mortgage rates. The Federal Reserve indirectly affects mortgage rates by adjusting the nation's supply of money. Castle & Cooke MORTGAGE, LLC NMLS #1251 http://www.forbes.com/sites/trulia/2012/09/06/what-you-need-to-know-about-mortgage-rates/ http://www.thetruthaboutmortgage.com/what-causes-mortgage-interest-rates-to-move/ http://homeguides.sfgate.com/understand-affects-mortgage-rates-8840.html http://www.consumerfinance.gov/blog/7-factors-that-determine-your-mortgage-interest-rate/