FAQs about Home Mortgage Rates

We work hard to keep home mortgage rates low for everyone. There are a number of factors that impact your personalized rate. Find answers to some common questions below.

How are interest rates calculated?

A low-interest rate calculation consists of the following elements:

• The new mortgage loan amount
• How many mortgage points you will pay at closing
• Type of loan: Conventional, FHA, VA, etc.
• Type of home: primary or secondary
• Credit Score
• Debt to income ratio
• How much you will bring to the closing for fees and your down payment

Two people buying similar houses in the same neighborhood at the same time could likely have different interest rates. Our mortgage experts can help you determine your exact rate.


How often do rates change?

Mortgage rates with lenders change daily due to various aspects that make up the interest rate. When you purchase a home with Cake Mortgage, we will lock your low rate.


What does it mean to lock a mortgage rate?

Mortgage rates change constantly. It is helpful for you and your lender to lock a specific low rate for your loan. This ensures you get the best rate for your loan and allows you to keep that rate for a particular time frame as you search for your new home.


How do I know when to lock a rate?

Since rates change daily, call Cake when you know you want to move forward with a new home loan or refinance. Our consultants are here to help you get approved for a mortgage, find the best rate, and lock it in.


How is my loan rate calculated?

In addition to the standard loan rate elements, we calculate the lowest rate for your mortgage loan based on your personal financial situation, including credit scores, debt to loan ratio, downpayment, closing costs, your new loan amount, and the type of mortgage you’ve applied for.


What is a fixed-rate vs. adjustable-rate mortgage?

A fixed-rate mortgage has an interest rate that you lock in at preapproval and doesn't change.

An adjustable-rate mortgage fluctuates your interest rate each month based on industry rates.

There are pros and cons to each type; one is not inherently better than the other. At Cake, we take the time to get to know you, ask questions about your current situation and future plans, and tailor your loan to fit your needs.


What are the different loan types that impact interest rates?

Every mortgage loan has unique terms that impact the low rate.

FHA is a government-backed loan that is great for new home buyers, buyers who cannot put much towards a downpayment, or buyers with lower credit scores.

Conventional loans are typically for people who put 20% as a down payment and have tighter expectations.

VA loans are for veterans and their spouses. It is government-backed and allows for little to no down payment. The standards are more lenient.

A Non-QM mortgage is for those who have lower credit scores or are self-employed. The rates can be higher with this type of loan, but it is a beneficial option if you have a fluctuating income.


How do I find the best lender with the best rates?

Cake is here to make your life simple by finding the best rate for your loan. Call our consultants today to get pre-approved for your new mortgage loan. In addition, we will look at what loan meets your needs so you get the lowest interest rate for your dream home.