There are many factors that affect how much instalment amount you pay for your home loan. Understanding these factors will save you time and money.
Federal discount interest rate
Banks and lending institutions borrow money from the federal reserve banks. The discount interest rate is the rate charged by the reserve bank to the lending institution. The federal bank board of directors decide on the interest rate. This discount rate also called as prime interest rate is the interest rate on short term loans that banks charge their customers who have a high credit rating and are in good standing with the bank. You can get more information on the discount interest rate at www.FedPrimeRate.info
Your Credit Report
Consumer reporting agencies collect information about you. In general they gather and sell information about where you live, what you do, have you been sued, have you filed for bankruptcy, do you pay your bills on time and so on. When you request for a loan, your lender will pull up your credit report.
The FICO score is a method of determining the likelihood that the consumer will repay the home loan.