Right now is a great time to buy a new home. Home prices and interest rates are still low, and lenders are finally starting to lend a bit more freely again. However, if you find yourself looking for a home loan, you may be curious why you are advised to compare Mortgage Rates Des Moines. This is because different companies offer different rates, based on a variety of factors. Here are some of the factors that can affect the Mortgage Rates in Des Moines that you are offered.
Your Credit Score-
Your credit score plays a huge role in the rates that you are offered. If you have a great score, you can expect to get some of the best available rates. However, if you have anything less than perfect credit, your interest rate will rise. The lower your score, the more you can expect to pay. This is because you are greater risk of defaulting the lower your score.
Your Down Payment-
Another factor that can affect Mortgage Rates Des Moines is the amount of money you have to put for a down payment. Ideally, lenders like you to put down twenty percent of the total purchase price. However, they also understand that that is a lot of money, especially for first time home buyers. As such, you may still be able to get a great rate if you only have 10 to 15 percent to put down. If you have anything less than this rate though, you can expect your interest rate to be a bit higher.
The Length of Your Loan-
The last factor that can affect the rate you are offered is how long you are taking a loan out for. When it comes to home loans, you can finance for 15, 20, 25, 30 and 40 years. 15 year loans will have a slightly lower interest rate than 40 year loans. Generally, you are only talking about a few tenths of a percentage, but that can add up to a lot of money due to the amount you are financing for a home loan. Therefore, when possible, take a shorter loan to get a lower mortgage rate.
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