Andrew Augustyniak | Peoples Mortgage
Determining Interest Rates
What’s the current rate? As loan officers, we get this question daily. While it seems like an innocuous question that should be simple enough to answer, there are many variables that play a role in determining the “current rate.” While there is no such thing as the “current rate” for the market, there is a current rate for your individual situation. In order to have the best possible rate, it is important to understand the various variables that play a role in rates.
The largest dictator of interest rates is the one that everyone reads on the news or sees on TV. This is the 10yr US Treasury yield. This factor is not specific to any one borrower and dictates the baseline for rates on a broad scale. The lower the 10yr Treasury yield, the better mortgage interest rates will be as a whole.
The other factors influencing interest rates are individualistic. The most critical of the borrower’s specific factors is the credit score. The better your FICO score, the better rate you will be eligible for. The remaining factors include the amount of down payment for a purchase or loan-to-value for a refinance, loan type (FHA, conventional, etc.), occupancy (primary, investment, etc.), debt-to-income ratio, and loan purpose (purchase or refinance). All have a similar weighting when determining the current rate.
Each variable outlined is critical to determining the interest rate you are eligible for. If you have a question about the interest rate you are eligible for, give us a call today!!
|ANDREW AUGUSTYNIAK Branch Manager/Loan Officer
Call or Text: 480.735.4095
3303 S Lindsay Rd, Bldg. 2, Suite 104, Gilbert, AZ 85297
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|LO Licensing: AZ LO-0921752 CA-DBO911628 OR WA-MLO-911628 NMLS-911628 Company Licensing: Peoples Mortgage Company, A DBA of Moria Development, Inc. AZ BK-0904164 California – FLL603L266 / RMLA4130661, Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act: www.peoplesmortgage.com/privacy-policy OR-ML-5111 WA-CL-6274 NMLS-6274|