Introduction
Mortgage rates are one of the most important factors in determining your monthly payment and the total cost of your home over time. Even a small difference in rate can mean tens of thousands of dollars over the life of a loan.
Understanding what drives rates — and how to position yourself for the best possible rate — can save you significant money.
1. What Influences Mortgage Rates
Mortgage rates are influenced by a combination of macroeconomic factors and your personal financial profile. The Federal Reserve’s monetary policy, inflation expectations, and the bond market all play a role in setting the baseline for rates.
Your credit score, down payment amount, loan type, and debt-to-income ratio determine where your rate falls within that range.
2. How to Lock In Your Rate
A rate lock guarantees your interest rate for a set period, typically 30 to 60 days, while your loan is processed. This protects you from rate increases during that window.
Timing your rate lock requires balancing the risk of rates going up against the possibility of them going down. Your loan officer can help you evaluate the best strategy.
Next Steps
Want to understand how current rates affect your buying power? US Home Portal can connect you with trusted lenders who will walk you through your options with no pressure.
