3 Mortgage Rate Factors Many Home Buyers Forget to Consider

Mortgage RateTo get the best mortgage rate in Utah, you need to know exactly which factors have a bearing on rates the lender will charge you. Every lender and borrower is different, so you can expect to receive a different rate from that of a family member or a friend, even if you choose to work with the same institution.

You most likely know of the critical factors that play major roles in determining your mortgage rate, like your credit, financial stability, and civil status among many others. However, there are several others you should never fail to consider. City Creek Mortgage lists the following:


Where exactly in Utah do you want to purchase a home in? Know that location is one of the major factors having a great impact on mortgage rates, so always consider and explore all your options.

You can get either lower or higher interest rates depending on the city and the neighborhood the home you want to buy is located in. Even the value of the homes within that specific neighborhood will affect your interest rates.

For instance, Washington County, located in Utah’s southwestern area, has the highest average home sale price. Salt Lake City comes in second highest, while counties in Cache-Riche have the lowest.

Your potential neighbors

Another factor that can impact your mortgage rates is whether or not your potential neighbors are good borrowers. Are they high- or low-risk borrowers? When you choose a neighborhood wherein borrowers of the lending company you wish to work with have high risk of loan defaults, you most likely will get higher rates.  

Primary or secondary residence

How you will use the home you wish to purchase in Utah is another factor the mortgage lender you will get into a contract with will consider. As a first time home buyer, you can expect lower interest rates. Buying a secondary home, or one you will use as a vacation property, will get you rates higher than those you have for your primary home.

What is important is to explore every option you have when it comes to lending institutions. Work with one known for their credibility and reputability, so that you can increase your chances of getting the most affordable interest rates. 

About Eleanor Sharp
Eleanor Sharp is the author of AGSE Law. As a paralegal, she has worked with attorneys in many fields to ensure their clients get the best advice and representation. She is passionate about helping people understand the complexities of the legal system so they can make better decisions for themselves. Eleanor loves reading, travel, and spending time with her family. She hopes her articles will help others navigate life’s legal intricacies with confidence.