What are Interest Rates, and how do they affect a Mortgage loan?


There are a lot of different definitions of the terms Interest rate. The easiest way we have found it explained is…. The cost of borrowing money, expressed as a percentage, usually over a period of one year.

 

Your interest rate is calculated by the following factors:

 

  • Loan to value
  • Credit score (middle of three Scores)
  • Mortgage lates (if any)
  • Debt to income ratio