When it comes to interest rates, it can be tempting to look up rates online. However, interest rates are unique to each person's financial situation, and looking up rates online may not give you an accurate idea of what rates you may qualify for.



For example, I searched online for the “national average interest rates” and one of the first results was a very big national bank quoting a very attractive rate. However, when I clicked on that link and went to find the small print on their website it read “This number is based on rates in the state of Texas at a loan amount of $200,000 with 20% down.” That is a very specific scenario and could be misleading if you are trying to use that number for your own purposes.

Here are some things that make your interest rate unique to YOU:

• Credit Score: Your credit score is a major factor in determining your interest rate. If you have a good credit score, you may qualify for a lower interest rate. On the other hand, if you have a lower credit score, you may be offered a higher interest rate.
• Debt-to-Income Ratio: Your debt-to-income ratio is another important factor in determining your interest rate. If you have a high amount of debt compared to your income, you may be offered a higher interest rate.
• Loan Amount: The amount of your loan can also impact your interest rate. Generally, larger loans may come with a higher interest rate. However, Jumbo Loan products usually have a lower rate than higher conforming loans.
• Loan Type: The type of loan you are applying for can also impact your interest rate. For example, a fixed-rate loan may have a higher interest rate than an adjustable-rate loan. Also, there are affordable loan programs that offer better rates for borrowers within a certain income bracket.

We want to be by your side through the buying process to help you navigate these factors and find a loan that fits your unique financial situation. In addition, it is important that you have a lender by your side to help you understand the nuances of interest rates and how they may impact your overall loan terms.

Please reach out with any questions – it is our passion to offer advice and support to our clients!

Liz Peter Mortgage Team

Luminate Home Loans