Mortgage rates are influenced by a variety of economic conditions . Broadly, these include the overall health of the economy, inflation levels, the Federal Reserve’s monetary policy, and supply-and-demand dynamics in the housing market. Lenders also consider personal factors like your creditworthiness and loan amount when setting your individual rate

The decision between a fixed-rate mortgage and an adjustable-rate mortgage (ARM) depends on your financial goals and how long you plan to own the home . A fixed-rate loan offers stability with the same interest rate (and monthly payment) for the entire term. An ARM usually starts with a lower introductory rate that can change after a certain period. If you value predictable payments and plan to keep the property long-term, a fixed rate may be better. If you expect to sell or refinance in a few years, an ARM’s lower initial rate could save you money in the short term.

Lenders determine mortgage eligibility by looking at your income, credit history, assets, and current debts. You’re more likely to be approved if you have a steady income, a decent credit score, and a moderate debt-to-income ratio . Before you apply, it’s a good idea to check your credit report, pay down any high debts, and even get pre-qualified. ARIS360’s loan experts can help review your information and let you know if you meet the requirements for a home loan, giving you confidence before you start the application process.