There is probably a difference between your mortgage rate and the ‘average’

It was the highest level in 23 years for the average US mortgage rate this week, at 7.49%. However, the rate you may receive from a lender may be very different. We could see either a significant increase or a substantial decrease from the current average. You have to take into account the financial attributes and risks you present to lenders as a borrower.

While the 2%-3% average mortgage rates homeowners secured over the past few years won’t return any time soon, rates aren’t expected to rival the sky-high rates of the 1980s, which surged to almost 19% amid inflation.

It is possible, however, that your rate will differ from the published average weekly rate.

The lender calculates your mortgage rate based on how likely it is that you will repay them. The lender determines how much you’ll have to pay for the loan using a method called “risk-based pricing.”

You will be able to get a lower mortgage rate if you present a lower level of risk.

It is one of the most important factors in lowering your mortgage rate. As a result of having more skin in the game, borrowers who are able to pay 20% of a mortgage are considered lower-risk borrowers.

Down payments less than 20% are likely to result in higher interest rates for borrowers.