If you’re buying or selling a house, chances are you’re hearing a lot about mortgage rates right now. You may even see some headlines talking about last week’s Federal Reserve (the Fed) meeting and what it means for rates. But the Fed doesn’t determine mortgage rates in Roseburg OR, or anywhere else… even if the headlines make it sound like they do.
The truth is, mortgage rates are impacted by a lot of factors: geo-political uncertainty, inflation for sure, the economy, and more. And trying to pin down when all those factors will line up enough for rates to come down is tricky.
That’s why it’s generally not worth it to try to time the market. There’s too much at play that you can’t control. The best thing you can do is control the controllables.
And when it comes to rates, here’s what you can influence to make your moving plans a reality.
Your Credit Score
Credit scores can play a big role in your mortgage rate. As an article from CNET explains:
“You can’t control the economic factors influencing interest rates. But you can get the best rate for your situation, and improving your credit score is the right place to start. Lenders look at your credit score to decide whether to approve you for a loan and at what interest rate. A higher credit score can help you secure a lower interest rate, maybe even better than the average.”
That’s why it’s even more important to maintain a good credit score right now. With rates where they are, you want to do what you can to get the best rate possible. If you want to focus on improving your score, a good mortgage loan officer can give you expert advice to help. Need a recommendation? Ask here.
Your Loan Type
There are many types of loans, and depending on what type of home or property you are buying, each offers different terms for qualified buyers. The Consumer Financial Protection Bureau (CFPB) says:
“There are several broad categories of mortgage loans, such as conventional, FHA, USDA, and VA loans. Lenders decide which products to offer, and loan types have different eligibility requirements. Rates can be significantly different depending on what loan type you choose.”
When working with me or one of my professional agents, make sure you find out what’s available for your situation and which types of loans you may qualify for.
Your Loan Term
Another factor to consider is the term of your loan. Just like with loan types, you have options. Freddie Mac says:
“When choosing the right home loan for you, it’s important to consider the loan term, which is the length of time it will take you to repay your loan before you fully own your home. Your loan term will affect your interest rate, monthly payment, and the total amount of interest you will pay over the life of the loan.”
Depending on your situation, the length of your loan can also change your mortgage rate. Think through this one before purchasing a house in Roseburg OR.
Bottom Line
Remember, you can’t control mortgage rates and you can’t control what happens in the broader local Roseburg OR economy. But you can control the controllables.
Work with a trusted lender to go over the things you can do that’ll make a difference. By being strategic with these factors, you may be able to combat today’s higher mortgage rates and lock in the lowest one you can.