Minnesota First Time Home Buyer Interest Rates

Everything you need to know about what will determine your interest rate as a first time home buyer and what to expect when it's time to apply for a home loan.

So you’re serious enough about buying a home that it’s time to do a little research on what kind of interest rate you can expect as a first time home buyer. Well, as you might expect, interest rates can vary and be dependent on a variety of different factors, which we'll summarize below.

Credit Score

Your credit score can have a major impact on your interest rate. In most instances, borrowers with higher credit scores receive lower interest rates than borrowers with sub-par credit. Not surprisingly, most lenders use your credit history to help determine what kind of borrower you'll be, and to evaluate what kind of a risk you’ll be should they decide to issue you financing.

Down Payment

The larger down payment you’re able to make as a first time home buyer can also help secure you a lower interest rate. Along with having to borrow less money, lenders also view borrowers who are able to put more money down as a lower risk, ultimately impacting your interest rate for the better.

Loan Term

Shorter loan terms usually mean lower interest rates, although keep in mind a shorter loan term also means higher monthly payments in most cases. And higher monthly payments usually aren’t ideal for first time home buyers specifically.

Loan Type

Common loan types for first time home buyers range from FHA and VA Loans to USDA and even conventional loans. With each loan type also comes varying interest rates, so it’s important  research every available financing option to best determine what’s right for your situation.

CONTACT US FOR MORE INFORMATION ABOUT FIRST TIME HOME BUYER INTEREST RATES