Any mortgage rate equal to or lower than 3% is an excellent mortgage rate. And the lower your mortgage rate, the more money you can save over the life of the loan. A good interest rate on a credit card is below 14%. That's roughly the average regular interest rate on credit cards for people with excellent credit.
Even a relatively good interest rate on credit cards for people with lower scores isn't that low. For example, credit card users with good or fair credit could pay interest at an annual rate of more than 20% and still have a lower than average APR. A better-than-average amount for a credit card in general isn't much lower than 20% either. That's why the best interest rate on a credit card is 0%.
The higher your credit score, the more likely you are to qualify for a mortgage with a lower interest rate. A low credit score could tell lenders that you are a high-risk borrower and may not be willing to lend you money. Homebuyers may pay higher interest rates on loans that are particularly small or large. The amount you'll need to borrow for your home loan is the price of the home plus closing costs minus the down payment.
Depending on your circumstances or the type of home loan, closing costs and mortgage insurance may also be included in the amount of your home loan.
