What Are Mortgage Rates Based On?

What do you want of Mortgage Interest Rates Today ?.

Technically, a estimate of factors can affect a mortgage loan interest rate. However, the two factors that have the greatest impact are a mortgage applicant's prestige standing and the prime interest.

Mortgage Interest Rates Today

Credit Standing

Credit standing, sometimes called prestige rating or prestige worthiness, is a reflection of how you have handled the debts you've accrued with creditors in the past. If you have lines of prestige with many lenders and you have made quarterly payments to those creditors based on the terms and amounts promised, you will have a good prestige rating. Today, "good" is considered a prestige score of 680+. If you have established prestige lines with lenders and haven't paid, your prestige rating will be poor and your prestige score will be less than 550.

Prime Rate

The prime rate is the interest rate that is the basis for all mortgage loans. It's considered by the banking business and is based on the interest banks fee corporations for borrowing money. If you hear news of the prime rate dipping, expect mortgage interest to fall; if you hear about an increase, mortgages rates across may also increase.

Putting It All Together

The normal rule of thumb is that those with "good credit" qualify for the lowest mortgage interest rates available; those with "bad credit" pay higher interest rates. And, since the prime rate is set independently of an individual's prestige rating, the interest rate one qualifies for is equal to the prime rate plus the rate the personel is eligible for based on their prestige rating. Got it? Good!