Why can Joe get a mortgage loan with a
lower interest rate than mine?
When a lender makes a loan the interest
rate the charge is [in part] a reflection of the risk they feel they are
assuming by lending you the money. Each lender has their own procedures
for assessing loan risks but their are some common factors which are
considered.
Note: Often the published rates we
see advertised are (at best) the lowest available rates and (at worst)
simply misleading. Many people will not
be able to actually get loans at published rates. Any rate quote you receive
from someone without knowledge of your specific situation should be
taken with more than a pinch of salt!
What are some of the factors which
Influence the rate I can actually get?
-
The amount of the loan vs. the appraised
value of the property
-
Your credit score
-
Your monthly income
-
Your previous mortgage payment
history
-
Any bankruptcies, judgments or delinquencies
-
The total amount of your loan
-
The type of property
-
Whether or not you intend to live in
the property or rent it out
-
The location of the property
What about discrimination?
Federal legislation outlaws
discrimination based upon:
From personal experience as a borrower
(I'm originally from the UK) I can tell you
that these laws do not provide for protection based upon:
Although green card holders (permanent
residents) with
a credit history generally do not experience any special difficulty,
non-resident aliens may face some
difficulties in finding a loan or mortgage |
