If you’re like many people, you decided to work with your lender because of the ultra-low interest rates they advertised.
But what happens when the bank doesn’t offer you the same low interest rates they’re advertising?
Why Did the Bank Offer You a Higher Interest Rate?
When a lender advertises an incredibly low mortgage rate, it’s not meant for everyone. Typically, those super-low rates are only offered to people with very high credit scores (think 750 or higher) and those who have very low loan-to-value ratios. (You get a low loan-to-value ratio by putting down a substantial down payment. In many cases, the banks that offer these rates are looking for you to come up with at least 40 percent down.)
Your Credit Score and Low Interest Rates
Even if your credit score isn’t higher than 750, you can still get very favorable terms on a loan. However, the riskier you are, the higher your interest rate will be.
Other Factors Involved in Your Interest Rate
Other factors that can affect your interest rate include what type of property you’re buying (such as whether it’s an Aspen condo or a vacation home), how large the loan is, and whether you’re holding other loans at the same time.
Are You Buying a Home in Aspen?
We’d love to help you find the perfect home for sale in Aspen.
If you’re thinking of moving to Aspen or any of the surrounding communities, we’d love to help you find your dream home. Give us a call at 970-429-8275 or get in touch with us online. If you’re selling, get your free Aspen real estate market update and find out how we can sell your home quickly and at the best price.
While you’re here you can also browse our:
- Basalt real estate listings
- Carbondale real estate listings
- Snowmass real estate listings
- Woody Creek real estate listings