A: Baseline mortgage rates are determined by the market, not individual lenders. Ironically though, the final rate that youll end up paying in interest isnt actually the baseline one.
Your lender will determine the final interest rate that you will pay based on several factors that are weighed alongside the baseline, including:
These touchpoints help them determine if youre perceived to be a responsible borrower, and how likely you are to repay any sums that are lent. But your credit score isnt necessarily determined by your annual income and the amount of money that you keep in an investment account. Rather, its a reflection of several factors, including your past ability to maintain and repay credit. Bearing this in mind, a track record of late or missed payments, high utilization, a short credit history, or not enough diversity in your portfolio can negatively impact your credit. Therefore, a low score indicates that youve had trouble in one or more of these areas, signaling that you may be a high-risk borrower. Continue reading Credit score and credit history: Lenders look to credit scores and credit histories as a snapshot of your financial health