Mortgages

The two factors that have the greatest impact are a mortgage loan applicant's credit standing and the prime interest rate. Credit standing, sometimes called credit rating or credit worthiness, is a reflection of how you have handled the debts you've accrued with creditors in the past. If you have lines of credit with multiple lenders and you have made regular payments to those creditors based on the terms and amounts promised, you will have a good credit rating. Today, "good" is considered a credit score of 680+. If you have established credit lines with lenders and haven't paid, your credit rating will be poor and your credit score will be less than 550. The prime rate is the interest rate that is the basis for all mortgage loan interest rates. It's determined by the banking industry and is based on the interest rate banks charge corporations for borrowing money. If you hear news of the prime rate dipping, expect mortgage loan interest rates to fall; if you hear about an increase, mortgages rates across may also increase. The general rule of thumb is that those with "good credit" qualify for the lowest mortgage interest rates available; those with "bad credit" pay higher interest rates. And, since the prime rate is set independently of an individual's credit rating, the interest rate one qualifies for is equal to the prime rate plus the rate the individual is eligible for based on their credit rating. Got it? Good!


 * *In other words, COLLATERAL, DOWNPAYMENT HISTORY, and CREDIT HISTORY. **

multiple choice Q: What are the two greatest factors that influence a mortgage loan interest rate? a.) collateral, down payment history and credit standing. b.) banking industry and corporations. c.) wiki and blogs d.) government spending and taxe rates