Interest rates are affected by a number of factors, some of which are economic while others are government policy. It is important for consumers to learn about the main factors affecting mortgage rates before they apply for a new loan or seek mortgage refinancing. The following are the main factors affecting refinance rates:
i) Applicant's Credit History
The credit history of the property owner can significantly affect the refinance rate he or she gets from lenders. Obviously, those with low credit scores can expect to pay higher rates and vice versa.
ii) Government Policy
The government cares about its citizens, so it has put in place programs to help low income taxpayers, veterans and persons with disability. Through these programs, consumers can access low-interest mortgages and refinancing. Secondly, the government, in a bid to promote economic growth, can lower interest rates. This will entice consumers to buy homes, which will create a huge demand for new constructions and increase construction jobs, thereby jump-starting the economy. Visit us here.
iii) Lender's Profit Appetite
Lenders usually lend out money obtained from customers' long-term savings, loans from other financial institutions or their own money. Depending on the source of funds as well as the profit appetite of lenders, interest rates may differ greatly.
i) Applicant's Credit History
The credit history of the property owner can significantly affect the refinance rate he or she gets from lenders. Obviously, those with low credit scores can expect to pay higher rates and vice versa.
ii) Government Policy
The government cares about its citizens, so it has put in place programs to help low income taxpayers, veterans and persons with disability. Through these programs, consumers can access low-interest mortgages and refinancing. Secondly, the government, in a bid to promote economic growth, can lower interest rates. This will entice consumers to buy homes, which will create a huge demand for new constructions and increase construction jobs, thereby jump-starting the economy. Visit us here.
iii) Lender's Profit Appetite
Lenders usually lend out money obtained from customers' long-term savings, loans from other financial institutions or their own money. Depending on the source of funds as well as the profit appetite of lenders, interest rates may differ greatly.
