We all know what an interest rate is but how many of us know what affects the rate we get from a bank. Some of the following we can control and other are out of our hands.
The Economy:
Economic news, good or bad, will affect mortgage bond prices. Home loan rates are directly influenced by what happens here.
Your Financial Situation:
Income - this will help determine what you're able to afford monthly on your new mortgage. It helps if you've been with your employer for 2 years. If it hasn't been 2 years but you were in the same type of field before that will help. Every bank has different guidelines so be sure to have a couple in mind to check with and compare.
Debt - You may hear a lender mention "debt to income ratio". A debt-to-income ratio is one way lenders measure your ability to manage the payments you make every month to repay the money you have borrowed.
To calculate your debt-to-income ratio, you add up all your monthly debt payments and divide them by your gross monthly income. Your gross monthly income is generally the amount of money you have earned before your taxes and other deductions are taken out. For example, if you pay $1500 a month for your mortgage and another $100 a month for an auto loan and $400 a month for the rest of your debts, your monthly debt payments are $2000. ($1500 + $100 + $400 = $2,000.) If your gross monthly income is $6000, then your debt-to-income ratio is 33 percent. ($2000 is 33% of $6000.)
Credit Score - One of the biggest determining factors or your mortgage interest rate will be your credit score. The higher your score, the lower you interest rate. Over a 30 year mortgage the slightest point up or down on your interest rate can add up to a significant amount of money.
Type of Loan:
The actual type of loan will have a factor on your interest rate. Conventional, FHA, VA, USDA, and in house loans will all have a different rate, but typically are close.
Rates will change daily. Sometimes just a little and sometimes more. Click here to view mortgage rates.
If you're interested in real estate in Panama City or Panama City Beach, FL call Lawrence & Associates - Keller Williams for a free
About Lawrence & Associates - Keller Williams
When you hire us you get a team of professionals. We are committed to doing one thing, helping you! Whether that's selling your home quick and stress free or finding you the perfect home, we're going to make it happen.
Nathan Lawrence, team owner, brings a wealth of knowledge to his clients with close to 10 years of experience. Specializing in New Construction and Residential Investments Nathan is very excited about the growth coming to this area. “I believe Bay County is on the brink of a tremendous amount of growth. I look forward to what the future holds for the world’s most beautiful beaches”. As an agent who's an expert in this local area, I bring a wealth of knowledge and expertise about buying and selling real estate here.
Sell a Home:
When it's time to move, you need someone who will advertise your home, not just put a sign in the yard, put it in the computer and cross their fingers. At Lawrence & Associates we have a step by step marketing plan we'd love to share with you. Find out why we are out selling our competition and how we are making you more money along the way. We have a team of experts for every step of the process and the difference is evident. Ask us about our selling program, 88 DAYS TO SOLD!
Find Your Next Home:
Buying a property will for most people be their single largest purchase they'll ever make. Having a knowledgeable professional who you can trust can make the process an easy, smooth, and fun experience. You need someone who knows this area inside and out! We will work with you to find the right home at the right price for you, including all the neighborhood amenities that matter - not to mention the essential criteria you have for your ideal home.
Nathan Lawrence
Lawrence & Associates - Keller Williams
850-814-8588
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