The weird thing about Indianapolis mortgage rates is that they are rarely the same for two different people. While it is true that a standard prime lending rate exists throughout the country that sets the standard lending rate for mortgages, there are other factors that go into figuring out your exact mortgage payments. And the biggest one is you. Credit Rating and Indianapolis Mortgage Rates One big thing that can change what mortgage rate you get from your lender is your credit history. You can get your particular credit rating online and have it with you before you go into a lender’s office. Armed with this information you should be able to slightly guess what type of interest rate they might give you. But there’s other things to consider too. Your Credit History
This is not the same thing as your credit rating in that your credit history is your personal financial background. It is not a number that can be given to you like your credit rating. Instead, this is made up of things like if you have paid your loans back on time in the past, what types of things you’ve done with money in the past, and how your history looks on a general bird’s eye view to a lender. Type of Loan The type of mortgage loan that you’re trying to get can also have an impact on the rate that you end up paying. This is because certain types of loans are considered higher risk for lenders. The higher the risk to the lender, the higher the interest rate may be. There are other things that go into effect that help protect lenders against you defaulting on the loan, as well. So you could still be a high risk and get a decent mortgage rate. You just have to look into what different types of loans are available and what is right for you. Length of Loan The time that you are borrowing the money also affects the interest rate that you’ll end up paying ever month. You can get a lower rate or a higher rate depending on if you are borrowing for 15 years vs borrowing the money for 30 years. There are different lengths of mortgage loan periods and you can find out all the different types if you talk with your broker or loan officer. Your Down Payment Another thing to think about that may affect your rate is how much down payment you are going to put down on the property. The higher the down payment, the lower your interest rate may be. Sometimes you don’t have to put down any money on a loan, but it’s still a good idea to if you are able. This may not always be the case, but sometimes a lender will offer you a lower rate if you put down some money on a zero down-payment type of loan. Ask your broker or loan officer to pair you up with some lenders who will give you a better rate for putting down more money up front, if that’s something that you are able to do. Other Things to Consider There are a lot of other things that can affect your rate like where your property is located, the type of interest you choose to pay, and many other things. The best thing to do if you are interested in learning more about what your actual interest rate could be is to talk with a local mortgage expert or loan officer. Their job is to find you the perfect loan that is right for you and your certain situation.
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