Be cautious! 7 things that will drastically affect your mortgage rate.

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Everybody craves a low mortgage rate because no one would love to pay through the nose for any services or products. It is why when people are searching for a home mortgage; they tend to ask a dozen questions so that they can pick a mortgage lender that has the lowest possible interest rates.

But, in reality, no two people pay the same mortgage rate. Mortgage rates tend to change regularly, and it is because of the reasons identified below:

Credit score

One of the essential things that can influence your mortgage rate is your credit score. This means that if you have a high credit score, you are most likely to get an interest rate that would be lower to someone whose credit score is lesser than yours.

Mortgage lenders tend to use your credit scores to determine how reliable you would be when repaying your mortgage loan. Information like credit history, which includes your loans, credit cards, and repayment history determine what your credit score would be.

Property location

The location of the property also determines what mortgage rate you would be getting.

The laws and policies of each state government could help to either increase or decrease the amount of rate you would be paying on your mortgage.

Your mortgage rate would also be greatly depending on how urban or rural the area your property is located in.


Inflation is pretty much when the price of goods generally rises over a period which leads to a continued fall of purchasing power of money.

Mortgage lenders have to keep this in mind when they dish out mortgage loans to people. They have to keep the interest rate at a level where they are still able to turn a net profit regardless of whatever level of inflation the economy might be.


The economy of the country also plays an active part in determining the mortgage rate.

In a buoyant economy where there is more money to spend and people have jobs to do and are demanding mortgages, then the mortgage rate is likely to go up. When the situation is reversed, if an economy is suffering from recession and the unemployment level is skyrocketing, people are less likely to demand mortgages, and that would shoot down the mortgage rate level.

Loan duration

The duration of a mortgage would also determine your mortgage rate. If you have a shorter mortgage loan duration, you are likely to have a lower interest rate and a lower overall cost compared to someone whose mortgage loan takes a longer time.

Down payment

Mortgage lenders usually tend to tilt towards giving people who pay larger down payments a low mortgage rate than those whose down payments are not as substantial. This is because they tend to believe that those who put down larger down payments put the lenders at a lower level of risk when compared to those who put down less.

 Which is why it is highly advised to put in a high down payment as it could help lessen your mortgage rate interest.

Property type

Like we said that no two mortgage rates are the same because of the number of peculiarities and technicalities that makes each different, one of those things that determine the mortgage rate is the type of property you would be acquiring with your mortgage loan.

The mortgage rate you would be paying on a 4-unit property would differ significantly from the one you would be paying on a single-family home. Likewise, the mortgage rate on a condo would differ from a multi-family home.

These properties differ, and as such, their mortgage rate also differs.

About The Power Is Now Media

The Power Is Now, continues to keep you updated with the latest news in the real estate market, as we strive for advocacy of homeownership, wealth building, and financial literacy for low to moderate-income and minority communities. In this regard, we have a team of professional realtors— VIP Agents stationed nationwide to help you with anything you need in attaining your homeownership dreams. You can get in touch with the VIP Agents at If you can’t find an agent from your area, you can contact me directly for a referral. Also, ensure you stay updated with any developing real estate market news by regularly checking our blog page at You can also set up an appointment to speak directly to me at

Disclaimer: The views and opinions of Eric Lawrence Frazier are his own and do not necessarily represent First Bank or any organization affiliated with Eric Lawrence Frazier, or the Power Is Now Media Inc. First Bank is an Equal Credit Opportunity Lender. Eric Lawrence Frazier, MBA, is also a Vice President and Mortgage Advisor with First Bank. NMLS#461807 and a California Licensed Real Estate Broker DRE# 01143482. Email: Ph: 714- 475-8629.

Eric Lawrence Frazier MBA 
President and CEO 

The Power Is Now Media, Inc.


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