Sunday, April 30th 2017


What is the housing interest rate?

Interesting Question?   (6)   (9)

Answers (2)

20th Dec 2009 by Burt Carlson

The rates charged for homes are mortgage rates and are based on a borrowers credit profile which includes credit score/history, debt ratio and amount of down payment. These days a borrower must meet all three tests to qualify for a home mortgage. For the most part rates are driven by standards set by Fannie Mae, Freddie Mac and to a certain extent FHA. These entities are using risk based pricing models. This means that once the borrower meets the minimum standards for the loan there may be some risk adjustments to the pricing/interest rate. For example, the risk based pricing model has improvements for credit score up to a certain point. So a borrower with a 740 score would have a slightly lower rate than a borrower with a 680 score assuming their credit profiles were identical except for the credit score. There are also adjustments for larger down and type of property being purchased (single family home, condo, second home, investment property, etc). While the risk adjustments are the same each lender has its own pricing/rate philosophy to compete in the market so as always it is smart to shop around.

Like This Answer?   (0)   (0)
This answer is the subjective opinion of the writer and not of
5th Nov 2009 by Gary

A housing interest rate is an interest rate offered by a bank to mortgage a home, based upon factors like the credit and income of an individual, how much money is being put down and the quality of the home which will be used as collateral for the loan. Housing interest rates are different because of competition, and so you should check out several lending institutions before deciding on which one to use.

Like This Answer?   (0)   (0)
This answer is the subjective opinion of the writer and not of

5th Nov 2009 In Investing 2 Answers | 1530 Views
Subjects: housing interest rate, interest rate,

Answer This Question / Give Your Opinion
What is the housing interest rate?

Answer: *

What country is this answer relevent to? *
Your Name: *

Enter Verification Number: *

Give Your Opinion
What is an investment fund?
Share a simple answer to help inform others:
Specific to any country?
First name / Alias

• Your answer will be posted here:
What is an investment fund?
Unanswered Questions in Investing
What is the fed interest rate?
What are Step Up CDs?
What are Add On CDs?
What is the dow divisor?
What is a Step Down CD?

Answered Questions in Investing
What are treasury notes?
What are s&p futures?
How to short the s&p?
What bank has the highest interest rate in USA?
How is the nasdaq calculated?
Ask A Question
Get opinions on what you want to know:
Specific to any country?