 TITLE: How Much Interest Do You Pay on a Mortgage? CONTENT: What Factors Affect How Much Interest You'll Pay on a Mortgage?\n---------------------------------------------------------------\nWhile you may see headlines about how interest rates have climbed or fallen, the rate you read about in a news story isn't necessarily the one you'll receive on your mortgage. As with other types of loans, the rate you receive can depend on your creditworthiness and the loan's specifics.\nWith mortgages, the following can affect your interest rate:\n*   **The lender**: Lenders may offer different rates on their loans, which is why it's important to get several offers before choosing your lender.\n*   **Your credit**: You may be able to qualify for a mortgage with a score of 580 to 620, or lower if you can put at least 10% down. However, a higher credit score can help you qualify for the best rates on your mortgage.\n*   **Your down payment and loan amount**: Putting more money down and taking out a smaller loan can lead to lower interest rates as lenders take on less risk. Additionally, if you put at least 20% down, you don't need to pay for private mortgage insurance (PMI).\n*   **The loan term**: Choosing a shorter repayment term for your loan can also lead to lower interest rates, but your monthly payment will be higher.\n*   **The loan type**: There are different types of loans, such as conventional loans, jumbo loans and mortgages from government-backed lending programs. The loans may have different fees, insurance requirements, interest rates and minimum down payment amounts.\n*   **Whether the loan has a fixed or adjustable rate**: Adjustable-rate mortgages tend to start with a lower interest rate, but the rate can rise in the future. Fixed-rate loans can be less risky as the interest rate will never change, but the rate may start a little higher.\n*   **Mortgage points**: You may be able to make an upfront payment for discount points, which lower your loan's interest rate. Alternatively, lenders may offer you credits in exchange for accepting a higher interest rate. END