Getting the best possible rate on your mortgage is a key part of the home buying process. Even a slightly lower rate could save you thousands of dollars over the life of a loan.
When you begin considering a home purchase, start keeping an eye on mortgage rates. They tend to fluctuate based on federal interest rates, bond prices and what’s going on in the housing market.
Lenders start with the par rate, then look at your risk profile to determine what rate they will offer you—usually based on a combination of the following factors: