The interest rate of a mortgage loan is the percentage that is applied to calculate the fees charged by the bank or credit institution for the service of lending the money and is usually expressed in an annual term.
In addition, there is what is called the Nominal Interest Rate (NIR) and the Annual Percentage Rate (APR). The former is the interest rate as is, the latter also includes other expenses and is always calculated over a 12-month term, even if the term of the loan is shorter.
In this case, we are showing the average Nominal Interest Rate of mortgages in the United States, with a term of 30 years and a fixed interest rate, which does not change during the whole period.
With us you can also check the average interest rate of 15-year mortgages.
How is the average interest rate calculated?
The value shown here is calculated on a daily basis, obtaining the rates applied by the 10 main banking institutions in the country in the 10 most populated states.
In this way, the value is established according to the average of the vast majority of mortgages signed in the United States, which gives a fairly reliable figure to measure the temperature of the market.
The survey is conducted by the prestigious financial portal Bankrate.com through an ongoing analysis of mortgage offers from the various financial institutions offering mortgage loans in the United States.
Factors Affecting Your Mortgage Interest Rate
The interest rate on your mortgage loan depends on a number of factors, both macroeconomic conditions and your own credit profile. Among these variables are:
- Your financial situation: The better your credit score, the better interest rate you will get. The same goes for your down payment amount and level of indebtedness. Usually, if you have more money to put down, you will get a lower interest rate.
- Loan amount: The amount of the loan can influence the interest rate.
- Interest rate: Paying a fixed interest rate for the entire term is not the same as paying a variable or adjustable rate.
- Length of the mortgage: Shorter terms usually carry lower rates because the bank assumes less risk.
- Location of the property: Rates vary depending on where you buy, especially from state to state.
- First-time homebuyer: Many first-time homebuyer loan programs include a mortgage with a lower interest rate.
- Economic factors: In general, mortgage rates depend on factors such as the Federal Reserve, inflation and investor appetite.
- The lender you work with: Lenders set rates based on many factors, such as their own supply and demand.
Mortgages with a lower interest rate.
In addition to the usual mortgage loans usually offered by banks and financial institutions in the United States, it is also possible to access some loans to buy a house with preferential conditions.
This is the case of FHA mortgages loans, offered by the Federal Housing Administration, which allow easier financing for people with low incomes, also allowing the financing of 100% or close to the total value of the house.
There are also VA mortgages, for military veterans, which have various types of assistance and benefits.
Español: Tasa de interés de las hipotecas a 30 años