What is the biggest factor in determining the price of a mortgage?
The interest rate is the percentage of the loan amount that the lender charges for borrowing money. It is the most important factor in determining the price of a mortgage.
The higher the interest rate, the more expensive the mortgage will be. The down payment and the total cost of the home are also important factors, but they are not as important as the interest rate.
Other factors that can affect the price of a mortgage include the term of the loan, the type of loan, and the borrower’s credit score.
The term of the loan is the length of time that the borrower has to repay the loan. The type of loan is either a fixed-rate mortgage or an adjustable-rate mortgage.
The borrower’s credit score is a number that represents the borrower’s creditworthiness. A higher credit score indicates that the borrower is less likely to default on the loan.