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The truth about the recent Fed rate cut.

Sep 19

1 min read

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You’ve probably seen headlines about the Federal Reserve adjusting interest rates, but here’s the reality: The Fed doesn’t directly set mortgage rates. While their decisions can influence the overall economy, mortgage rates are determined by a much more complex set of factors.


So, What really determines your rate?

Without getting too deep into financial jargon, mortgage rates are influenced by the broader financial markets and at least 30 different personal factors that come into play when lenders determine your specific rate.


30 Factors That Influence Your Mortgage Rate

  1. Loan Amount

  2. Loan Term

  3. Loan Purpose (purchase or refinance)

  4. Loan-to-Value (LTV) Ratio

  5. Property State

  6. Property Type

  7. Occupancy (primary residence or investment)

  8. Credit History

  9. Asset Verification

  10. Relocation

  11. Seller Concessions

  12. Employment Status

  13. Co-Borrower

  14. Lock Period (how long the rate is locked)

  15. Underwriting Method

  16. Loan Type (FHA, VA, Conventional)

  17. Amortization

  18. Cash Out (if refinancing)

  19. Combined Loan-to-Value (CLTV)

  20. Number of Units (e.g., single-family, multi-family)

  21. Credit Score

  22. Debt-to-Income Ratio

  23. Reserves (liquid assets)

  24. Gift Funds

  25. Income Verification

  26. Employment Information

  27. Citizenship Status

  28. Mortgage Insurance

  29. Escrow Inclusion

  30. Property County


Why It Matters

Getting the best mortgage rate is about more than what’s advertised. Every borrower has a unique situation, and all of these factors come into play when determining what rate a lender will offer. While low rates might look appealing, they are often tied to ideal scenarios that may not reflect your situation.


Working with a lender who understands these details can help you make sense of the process. At Boles Group Lending, we take the time to understand your full financial picture and future goals, ensuring you’re not just getting a low rate, but the right loan for you.

Sep 19

1 min read

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4

0