One of the most confusing parts of buying a home, particularly for those new to the process, is understanding current home loan rates. These rates can rise and fall dramatically in a very short period of time, which is why choosing the right type of mortgage loan is important, both now as well as in the future. This is where the team at Lynx Mortgage Bank, LLC, provides the insight, support, and loan options to allow you to choose the right program for your needs.
What Are Mortgage Rates Based On?
Mortgage rates across the country are tied to the bond market. This, in turn, means the overall economy’s state is a significant factor. When the market is high borrowers have more money, which means the mortgage rates tend to increase slowly over time.
When the economy is in a downturn, borrowers often face increasing challenges in obtaining a loan, which means interest rates will fall to make it possible for people who still qualify to obtain a mortgage.
Different issues also positively or negatively impact interest rates. The key facts that affect interest rates include:
- Economic Growth & Inflation
- Government Intervention
- Federal Reserve Monetary Policy
- Real Estate Market Conditions
These factors are outside of the scope of what a homebuyer can control, but some factors are, at least to some degree, controlled by the homebuyer.
We work with our customers to maximize their ability to get a mortgage with the loan term and interest rate type that works for their budget and needs.
Some of the important factors to consider include the location and type of home, the amount of the down payment, and the home price and loan amount. Of course, credit scores are also a factor, with higher scores resulting in a lower interest rate for a conventional type of home loan.
If you are a first-time home buyer and want a personalized approach to understanding the home buying process, book a consultation with a home mortgage specialist at Lynx Mortgage Bank, LLC.