Factors That Determine Your Interest Rate

Single family homes usually have lower interest rates than multi-family units. 

Owner-occupied dwellings have lower interest rates than properties purchased for investment. 

Interest rates can be significantly impacted by your credit scores. The better (higher) your credit score the lower interest rate you will most likely receive. If qualifying as an individual, lenders will take the middle of your three scores. If applying with a co-borrower, lenders will take the lower of the two middle scores.

The loan to value ratio (LTV) and/or combined loan to value (CLTV) can impact your interest rate. Loans where you have a greater variance between the mortgage amount and the value of the home will usually have a lower interest rate.

The mortgage product you apply for also has an impact on the rate. Conforming loans generally have a lower rate than non-conforming (jumbo) loans. 

Lock then Look. On purchase deals you get the flexibility to choose to pre-lock your interest rate for up to 90 days before you find your new home. Otherwise, Watson Capital Mortgage typically locks purchase and refinance rates for 22 days, but it can vary depending on your needs. There is no cost to the client if you do not find your home or the rate expires. 

Longer term fixed rate loans usually come with a higher interest rate. For example, a 15-year fixed rate loan will usually have a lower interest rate than a 30-year fixed rate loan

Taking cash out with a refinance changes the loan to value ratio and may increase your mortgage interest rate.