HomePath Mortgage Interest Rates are determined by 3 separate loan factors:
The amount of the down payment plays the greatest role in determining your interest rate. Next is the credit score. Lastly is the type of property you are buying. If you can put down at least 5% instead of 3% you will get a much lower interest rate. This extra down payment typically will lower your rate about .32% from the 3% down interest rate.Credit Score: While the minimum credit score required is 660, the higher the credit score the lower the loan costs (or lower interest rate).
Type of property purchased: Condominiums have loan cost additions. Single Family homes do not have price add-ons.
Amount of Down Payment: 3% Down payment is required on owner occupied purchases, and 10% is required on 2nd Homes and Investment purchases. However, the more you can put down the lower the loan interest rate. The less you put down the higher the rate.
Credit scores are 720+ will recieve a better interest rate than those with credit scores in the 600's.
Have questions, in contract now and need to close fast, looking to be prequalified? We can help. www.fanniehomepath.com