typically have higher initial interest rates compared to ARMs but provide rate and payment consistency over the life of the loan. Loan Term: The length of your mortgage term also influences the interest rate. Shorter-term notes, such as 15-year loans, have larger monthly payments but come with lower interest rates compared to 30-year loans. You will pay less interest over the 15-year (180 month) life of the loan. The rate is lower because lenders take on risk for shorter period of time. Down Payment: The size of your down payment can impact your mortgage rate. A larger down payment typically results in a lower interest rate because it reduces the loan-to-value (LTV) ratio, which is the amount of the loan compared to the home's appraised value. The larger the down payment the more equity that you hold which lessens the risk to the lender. Debt-to-Income Ratio (DTI): Lenders evaluate your DTI ratio, which compares your monthly debt payments to your income. A lower DTI ratio indicates less financial risk and may in combination with other factors lower the interest rate. Property Type and Location: The type of property you're financing and its location can influence your interest rate. Lenders may have different rates for single-family homes, 2-4 family homes, coops, condos, vacation homes, and investment properties. Additionally, rates can vary by geographic region and local housing market conditions. Lender Policies: Different lenders have their own underwriting guidelines and pricing structures. Your loan officer will help match your needs with their programs. Economic Conditions: Broader economic factors, such as inflation, unemployment rates, and central bank policies, can impact mortgage rates. These factors can lead to fluctuations in
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