Mortgage interest rates are the price you pay to get a loan using your real estate properties as collateral. They determine your monthly payments over the life of the loan.
Mortgage rates, on the borrower’s side, are influenced by the borrower’s financial “portrait,” the type of property, and type of loan.
In other words, by how risky lenders perceive that making the loan is.
As regards borrower “portrait,” credit score and history, money available, and employment history are factors.
As regards property type, detached single-family houses are considered less risky than most condos and 2-4 unit properties (well, some lenders consider 2-unti properties to be the same as a detached-single family house) while 3 and 4-unit properties are considered to be riskier still, while non-warrantable condos (condos against which Fannie Mae, Freddie Mac and governmental agencies won’t lend) are the riskiest.
As regards loan type, there are several things that come into play: