How Real Estate Interest Rates Work
Understand what determines your mortgage rate and how to get the best deal.
The Two-Part Rate System
Mortgage rates have two components:
- The base rate: Set by Federal Reserve. Affects all lenders equally.
- Your premium: What YOU pay based on credit, down payment, loan type.
What Affects YOUR Rate?
- Credit Score: 760+ = best rates | 700-759 = good | Below 650 = higher rates
- Down Payment: 20%+ = best rates | 5-10% = highest rates + PMI
- Debt-to-Income: Lower is better. Under 36% = best rates
- Loan Type: Fixed 30-year = standard | 15-year = lower rate
How to Get the Best Rate
- Improve your credit score before applying
- Increase your down payment if possible
- Shop multiple lenders (3-5 quotes)
- Consider paying points for lower rates
- Monitor Fed announcements
Need Help Understanding Rates?
Sean Bailey can explain rates and find you the best deal.
Email Sean
Sean Bailey
Licensed Mortgage Broker · Founder, The Lending Lab
Sean has funded $100M+ in loans across all income types. He specializes in fix-and-flip financing, bank statement mortgages, HELOCs, and creative solutions for investors and self-employed borrowers.
Sean@thelendinglab.com · (678) 231-2462 · www.thelendinglab.com