Factors That Influence Your Credit Score - conclusion

Type of refinance

Borrowers who are applying for a rate-and-term refinance will typically pay the same mortgage rate as borrowers who are purchasing a home. If you are applying for a cash-out refinance, you'll typically pay a mortgage rate about one-fourth percent higher if your loan-to-value is at 70 percent or above. Usually there won't be a bump-up in the mortgage rate if your loan-to-value is 60 percent or lower, even if you do a cash-out refinance.

Loan-lock length

A longer loan-lock period generally comes with a higher price, and that translates into a higher refinance rate. You'll see a variance in the rate from 0.125 percent to 0.375 percent depending on whether you lock in your rate from 30 to 45 or 60 days. Homeowners who want to refinance a mortgage usually need to lock their rate for at least 60 days.

Type of residence

Condominiums are considered slightly more risky than single-family homes and town houses, so condo borrowers will typically be quoted a refinance rate that is 0.125 to 0.25 of a percentage point higher than the best interest rates.