What Sets Your Mortgage Rate
Mortgage rates aren’t pulled from a single national number — lenders price each loan based on your credit score, down payment size, loan type, and how the broader bond market is moving on any given day. Generally, a higher credit score and a larger down payment qualify you for a lower rate, since both signal lower risk to the lender. The type of loan matters too: conventional, FHA, and VA loans are priced differently based on their underwriting standards and guarantees. You can see how a specific rate translates into a monthly payment using our mortgage calculator.
A few factors have an outsized impact on the rate you’ll actually be offered:
- Credit score — the single biggest factor lenders weigh
- Down payment size — a larger down payment reduces lender risk
- Loan term — shorter terms typically carry lower rates than longer ones
- Loan type — conventional, FHA, VA, and jumbo loans price differently
Before assuming a rate, it helps to check whether you’d actually qualify for the loan amount you have in mind — our guide on how to qualify for a home loan covers this in detail, and our home loan eligibility calculator gives you a personalized estimate based on your income and debts.