Mortgage rates in Iowa
Mortgage rates fluctuate constantly. They move up and down in accordance with what’s happening with the economy. You may see an advertised rate, but that’s not necessarily the rate you’ll be offered. Your credit history plays a role in what you’re offered, and if you’re perceived as a higher risk, you’ll probably have to pay a higher rate. Another factor that influences what you’re offered is the type of loan you request.
Non-conforming mortgages usually have higher rates because they’re riskier. Criteria on non-conforming loans are different than what is set by the two agencies in the U.S. that support mortgages: Fannie Mae and Freddie Mac. Those criteria include factors like debt to income ratio, the amount of loan requested, and the home’s value as compared to the loan amount requested.
