How Lenders Determine Your Mortgage Rate Based on Your Financial Risk Profile

Your mortgage rate is based on how likely lenders think you are to pay them back (your risk level). Lower risk means lower rates.

Key factors determining your rate include credit score, debt-to-income ratio, employment history, payment history, down payment amount.

Published average rates are for lower risk borrowers with 20% down payments. Your rate may vary.

You can shop around to different lenders for rate quotes. You can also buy down rates with discount points.

Lenders cannot discriminate based on race, color, religion, sex, etc. But they can price based on your financial risk factors.