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August 10, 2015

All in a Rate: 7 Key Factors

Homeownership

Good news for homebuyers.  Mortgage interest rates continue to hold below 4%. In fact, our weekly survey of lenders showed that the average rate for a 30-year fixed-rate mortgage was 3.91% with an average of 0.6 point for the week ending August 6, 2015. The 15-year fixed-rate mortgage averaged 3.13% with an average of 0.6 point.

But those are just the averages.  Understanding what factors go into to determining your rate can make you a savvier shopper.  According to the Consumer Financial Protection Bureau, seven key factors affect your interest rate:

  • Credit Score
  • Home Location
  • Home Price and Loan Amount
  • Down Payment
  • Loan Term
  • Interest Rate Type
  • Loan Type

Now you know. Armed with information you can have confident conversations with lenders and make sure you get a good deal.

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