(480) 656-5751 michael.faulkner@apmortgage.com
Lending in CA and AZ only
Lending in CA and AZ only

Interest rates and real estate go hand-in-hand. After all, the real estate market largely goes through highs and lows based on interest rates. And interest rates are impacted by a variety of factors.

Interest rates, which are defined as the portion of a loan that is charged in the form of interest to a buyer as a percentage of the overall amount due on a loan, are pretty competitive throughout the mortgage industry because they are determined by the markets. However, the interest rate for each home buyer may be different for a variety of reasons.

Interest rates on mortgage loans are largely determined by three factors: financial markets, your loan scenario, the type of property you are buying and how you intend to occupy it. Below is a breakdown on the aspects that come into play under each of these factors.

Financial Markets:

  • Bond prices
  • Inflation
  • Employment or underemployment
  • Nonfarm payroll
  • The stock market
  • The Federal Reserve
  • Government policies
  • Stimulus plans
  • Geopolitical events

Loan Scenario:

  • Credit score
  • Loan amount
  • Purchase price
  • Down payment
  • Loan product
  • Loan term
  • Loan type (Rate & Term or Cash out)

Occupancy and Type of Property:

  • Primary residence
  • Second home
  • Investment property
  • Single-family residence
  • Multi-family
  • Town home
  • Condo
  • Manufactured

If you have any questions about any of this, please contact us.

The views, articles, postings and other information listed on this website are personal and do not necessarily represent the opinion or the position of American Pacific Mortgage Corporation.

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