Calculate your Mortgage...


Latest Mortgage Rates Current Last Week 30 Year Fixed 15 Year Fixed 5/1 ARM Mortgages, Home Loans, and Mortgage Quotes at Zillow Mortgage Marketplace Get this widget See local rates




Home Mortgage Rate Factors

  Increase Decrease
Amount of Loan Rates Up Rates Down
Length of Loan Rates Up Rates Down
Adjustable Rate Rates Down Rates Up
Down Payment Rates Down Rates Up
Discount Points Rates Down Rates Up
Closing Costs Rates Down Rates Up
Credit Quality Rates Down Rates Up
Income Level Rates Down Rates Up
Lock In Period Rates Up Rates Down

interest rates

The amount of your loan may affect your interest rates due to the conforming loan limits established by Fannie Mae and Freddie Mac at the beginning of each year. If the amount financed exceeds the conforming loan limits that have been established for the year, interest rates can increase.

Shorter loans can save you thousands of dollars in interest payments over the life of the loan, but will raise the cost of your monthly payments. An adjustable rate mortgage may initially give you a lower rate than a fixed interest mortgage, but your payments are subject to increase as soon as the interest rate changes.

The size of your down payment can also affect interest rates. Large down payments, usually those that are greater than 20 percent, will get you the best available rates. Smaller down payments of 5 percent or less will bring higher rates as you are offering less equity as collateral. If you have money on-hand when you apply for your loan and would like to lower your interest rate, it is a good idea to put more money down. The concept is simple: In exchange for more money (collateral) upfront, lenders are willing to lower the interest rate they charge, since there is less risk involved for them. This subsequently reduces your monthly payments.

Closing costs are fees paid by the lender. If you don’t want to pay all of the closing costs, expect a higher rate which will pay the lender additional interest over the life of the loan.

Your credit quality and income level will also affect your interest rates because they determine your FICO Score, which is used when calculating loan terms. If you have excellent credit and your income surpasses the amount of debt you owe, you will receive lower rates. However, if your monthly income is insufficient to meet minimum debt obligations, you will receive a higher interest rate, even if you have a credit report.


Closing Costs Explained

Closing costs are the expenses that the lender accumulates from the origination of your new home loan. Some of these costs may be related to your loan application, while other fees are related to the house itself.

Unless the lender offers to pay them for you, these expenses are charged to the buyer and often cost between 3 and 6 percent of the amount being borrowed. Because different states require different taxes and fees to be included, it is impossible to come up with a generalization that applies to loans nationwide.

Typical closing costs include loan application fees and credit report, title search and insurance fees, property appraisal, lender’s attorney fees, inspections, survey, recording fees, transfer taxes, buyer’s attorney, document stamps, points and origination fees, and more. Escrow accounts are often required for many loans for homeowners insurance, real estate taxes, and homeowners associations and require cash deposits at closing.

After your initial meeting with a mortgage professional, you should receive a Good Faith Estimate (GFE) that shows all of the closing costs associated with your mortgage application. This estimate is required by The Real Estate Settlement Procedures Act and must be given to you within 3 days of applying for the loan.

You may be able to negotiate some of the fees included in your closing costs. Things like credit reports typically cost the same with every mortgage program. However, if you see that your preferred lender seems is offering a great deal but is over-charging on closing costs, point out the discrepancies and ask them to lower certain charges. Keep in mind, most third party fees have been previously negotiated between the mortgage company and the third party, and may not be able to be reduced. Also, watch out for “junk fees” that are included with most mortgage programs. Once you identify a junk fee, try to negotiate it down or eliminate it entirely before accepting the loan.

Give me a call! Contact me at 706-973-9711, or use my contact form to email me.