Mortgage rates in Troy Michigan can be extremely hard to understand. Like other parts of the home buying process, it can be hard to not only get a good rate, it can even be difficult to comprehend how mortgage rates work in the first place. At Gem Home Loans, though, we take the complexity out of buying a home. We’ll take care of all the heavy lifting so you can focus on the excitement of starting a new chapter in your life.
Why Choose Gem Home Loans?
At Gem Home Loans, our top priority is our clients – that’s the way it’s always been, and that’s the way it will always be. We work one-on-one to find the best possible solutions, and work to make dreams come true. All of our experts are skilled, experienced lending professionals who have a deep understanding of the housing market in Ann Arbor as well as the rest of the state of Michigan.
How Do Lenders Determine What Your Mortgage Rate Will Be?
As you can well expect, there are a lot of different factors that will go into setting the interest rate you’ll be paying on your mortgage. These are some of the most important ones.
- The amount you can put down on your new home – In most cases, the larger the down payment you can make, the lower the interest rate you’ll pay. If it’s possible, you’d like to be able to put down at least 20 percent of the purchase prices of the home. If you can make a larger payment, lenders will view you as less of a risk. You’ll get a low rate as a result. There are, however, many types of affordable loans that don’t require anything close to 20 percent down.
- The term of the loan – If you go with a shorter term loan, say, a 15-year mortgage instead of a 30-year mortgage, you’ll pay a lot less in interest. But you’ll be paying a much larger monthly payment.
- The home price – You probably already know that the more expensive the home, the better the chances your mortgage rate will be higher.
- The type of loan – There are some loan programs, such as those offered through the FHA, VA and even the USDA, that offer terms and requirements that are much different from conventional loans. In some cases, borrowers who qualify can get rates that are very low.
- Your credit score – The best interest rates typically go to borrowers who have a credit score of 760 or higher. But even if you have a lower score, we may still be able to help you get an affordable interest rate. Get in touch with us to learn more. In the meantime, though, do your best to raise your score. Pay down your debts wherever you can, and check your credit report for accuracy. Get any inaccurate information removed as quickly as you can.
Talk to Gem Home Loans to Learn More
As you can see, there’s a lot that goes into determining mortgage rates in Troy Michigan. Gem Home Loans will walk you through the entire process, and make you as comfortable as we possibly can. Get more information by calling us at (248) 780-1030 or using our online contact form. Find out why so many people have turned to us for all of their home lending needs.