The factors that move what you pay, and the ones you can influence.
The main factors
- Your credit history. A stronger history generally means better pricing.
- How much you put down. A larger down payment lowers the amount you borrow and can change mortgage insurance.
- The loan type and program. Conventional, FHA, VA and others are priced differently.
- The loan term. Shorter terms usually mean less interest over the life of the loan and a higher monthly cost.
- Points and lender credits. You can pay more upfront to lower your ongoing cost, or take a credit that lowers upfront costs and raises ongoing cost.
- The property and how you'll use it. A primary home, a second home and a rental are priced differently.
What you can do
Check your credit reports for errors well before you apply, keep balances on cards low, and avoid opening new accounts while you're shopping. When you compare offers, compare the same loan type, term and lock period side by side.
General information, not advice for your situation and not a loan offer. Programs and guidelines change; David can tell you what applies to you.