First-tier borrowers could see mortgage rates below 6%, while borrowers with low credit and no QM see rates higher than 8 percent. In general, a good interest rate for a personal loan is one that is lower than the national average, which is 9.41%, according to the most recently available Experian data. Your credit score, debt-to-income ratio, and other factors determine what interest rate offers you can expect to receive. Consumers with high credit scores, 760 or higher, are considered prime loan applicants and can be approved at an interest rate of as low as 3%, while those with lower scores are riskier investments for lenders and generally pay higher interest rates, up to 20%.
Scores below 580 are indicative of a consumer's poor financial history, which may include monthly late payments, debt defaults, or bankruptcies. The average 30-year mortgage rate rose to 4.03 percent this week from 3.85 percent last week, according to Bankrate's weekly survey of large lenders. Between January and August, a good mortgage rate went from the 3 percent range to the 6 or 7 percent range.
