 TITLE: What Factors Do Lenders Consider When Determining My Interest Rate? CONTENT: Mortgages\n---------\nFor most people, a mortgage is the largest loan they will ever undertake—and that's why it's crucial to get the best rate possible. Even saving a fraction of a percent on your rate can save you thousands of dollars over the lifetime of the loan. Here's what mortgage lenders use to determine your interest rate:\n#### 1\\. Your credit scores\nMost lenders look at credit scores when deciding whether you qualify for a loan, and mortgages are no exception. That's why it's important to review your scores and credit reports regularly to make sure you're doing everything you can to keep them as high as possible.\n#### 2\\. Your down payment\nIn some cases, the bigger the down payment you make, the lower the interest rate you'll qualify for. That's because mortgage lenders see you as less risky if you make a substantial down payment. Ideally, you'll put down 20% or more for the best rates.\n#### 3\\. Your loan term and loan size\nIf you can get a loan for a shorter period of time, you may be able to qualify for a lower interest rate. With a shorter-term loan, you'll likely have a higher monthly payment—but lower costs overall. The same goes for the size of the loan: If your loan is particularly large or small, you might be able to qualify for a lower interest rate.\n#### 4\\. Your loan type\nMortgage loans come in different categories: conventional, FHA, USDA and VA loans. The rates on these different types of loan products can vary significantly, which is why you should shop around and do your research on what you might qualify for.\n#### 5\\. Your home location\nWhere you're buying a property also factors into the interest rate. Simply put, some markets are more expensive than others. END