Where Mortgage Lenders See Risk

It's a common complaint: mortgage lenders advertise attractive rates, but you don't qualify for the best rates.  Why not?

Lenders offer their best rates to the best borrowers.  Most people understand that your credit is an important factor -- the better your credit, the lower your rate.  However, there are other factors involved.

The Consumerist hopes to give you a richer understanding of how mortgage lenders think.  In addition to your credit, lenders look at the type of property you're borrowing against and other characteristics of your loan.  If anything makes them uneasy, they'll bump your rate up.

Further reading:

• Risk Based Pricing Basics