Jason Gelios Michigan REALTOR®
  • HOME
  • The AskJasonGelios Show
  • FOR SELLERS
    • DIVORCE
    • SELLING TIPS
    • SELLING BY OWNER
  • FOR BUYERS
    • HOME BUYING TIPS
    • GET APPROVED
  • PRESS
  • JASON'S BLOG
  • Jason's Real Estate Book
  • Connect With Jason Gelios
  • TESTIMONIALS
  • PODCAST: AskJasonGelios Show
  • HAPPY LIVING DIGEST
  • SENIORS

What Determines Mortgage Rates

7/22/2020

0 Comments

 
Picture
By Jason Gelios REALTOR®/Author  |  8 Min. Read
There are many factors that determine what mortgage rates will be. In this brief article I share the most common factors that set the rates.

Factors you can control

Credit score

Credit scores can play a huge part in what mortgage rate will be offered. The lower the credit score the higher the interest rate. This is due to the lender viewing a lower credit score as higher risk.

Loan To Value Ratio (LTV)
Loan to value ratios are based on how much a borrower will need a loan for against what down payment or equity is available. For example, a home buyer could purchase a home for 80% LTV meaning they are putting 20% down. A current home owner looking to refinance could have 20% equity in their home. Therefore obtaining an 80% LTV mortgage.

Type of mortgage you are getting
Lenders often increase the rate due to the type of mortgage you are getting. If a current home owner is looking to get cash out when they refinance, they will pay a slightly higher rate.

Factors you can’t control


Overall economy
The state of the economy plays a huge role in where mortgage rates are. Typically mortgage rates tend to be better when the government wants to stimulate the economy.

Inflation
Inflation oftentimes sends mortgage rates higher. Your parents have probably told you how the dollar isn’t worth as much as it was years ago.

Job growth
Mortgage rates are very much ties to how the job market is doing. This is a great indicator of how mortgage rates will be because when the job market is great, people tend to purchase more.

Other factors that play a part in what mortgage rates will be are things like retail sales,
home sales, etc.
 

Jason Gelios is an award winning top producing REALTOR®/Author with Community Choice Realty in South East Michigan. Author of the real estate book ‘Think Like a REALTOR®: A little book about buying and selling residential real estate through the eyes of a REALTOR®. (Click here to buy)
 
Creator of The AskJasonGelios Real Estate Show, Jason educates aspiring home buyers, sellers and existing home owners tips and real world knowledge to help achieve their real estate goals.  Jason is also a local speaker educating home buyers on the process of purchasing a home.

0 Comments

Your comment will be posted after it is approved.


Leave a Reply.


    Picture

    Author

    Jason Gelios is a  Husband and Father. After that, a Top Producing REALTOR®, Author of the books 'Think like a REALTOR®' and 'Beating The Force Of Average', Creator of The AskJasonGelios Real Estate Show and Expert Media Contributor to media outlets across the country.

    Jason is dedicated to providing real estate advice and education to home owners, buyers and sellers with content that is practical and based on real world situations.

    Archives

    January 2023
    December 2022
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    July 2020
    May 2020
    April 2020
    March 2020
    February 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    April 2015

    Categories

    All

    RSS Feed

About Jason Gelios
For Buyers
For Sellers
Think Like a REALTOR® Real Estate book
Valuable Resources
AskJasonGelios Real Estate Show
Jason Gelios' Real Estate Blog​

In the press

Contact Jason Gelios
Copyright    All Rights Reserved    Reach Jason Gelios Direct at 586-419-2231    jasongelios@itsallabouttherealestate.com
Photos used under Creative Commons from wuestenigel, MarkMoz12, Spencer Means, Mrs Airwolfhound, r.nial.bradshaw, MarkMoz12
  • HOME
  • The AskJasonGelios Show
  • FOR SELLERS
    • DIVORCE
    • SELLING TIPS
    • SELLING BY OWNER
  • FOR BUYERS
    • HOME BUYING TIPS
    • GET APPROVED
  • PRESS
  • JASON'S BLOG
  • Jason's Real Estate Book
  • Connect With Jason Gelios
  • TESTIMONIALS
  • PODCAST: AskJasonGelios Show
  • HAPPY LIVING DIGEST
  • SENIORS