Conventional loans are the most common type of mortgage for buyers who have a solid credit history and can meet a down‑payment requirement. The interest rate you see on a loan offer is essentially the cost of borrowing money, and it is set by lenders based on a handful of key factors.

Why rates fluctuate

Mortgage rates track the broader bond market, especially the yield on 10‑year Treasury securities. When investors demand higher returns on government bonds, lenders raise mortgage rates to keep their loans competitive. Conversely, when Treasury yields fall, rates typically follow.

Key factors that determine your rate

• Credit score: Higher scores signal lower risk, so lenders reward borrowers with better rates. Scores of 740 + usually get the most competitive offers.
• Down payment and loan‑to‑value ratio (LTV): A larger down payment reduces the LTV, which lowers the lender’s risk and often results in a lower rate. An LTV of 80 % or less is a common benchmark for the best pricing.
• Debt‑to‑income (DTI) ratio: Lenders prefer a DTI under 43 %; a lower ratio can improve the rate you receive.
• Loan amount and property type: Conforming loan limits and whether the home is a primary residence, second home, or investment property affect pricing.

New Hampshire‑specific considerations

• New Hampshire does not levy a state income tax, which can make a higher gross income more affordable when qualifying for a loan.
• Most closings in the state are handled by title companies rather than attorneys, which can streamline the process and affect closing‑cost estimates.
• The New Hampshire Housing Finance Authority offers a first‑time‑homebuyer program that can provide down‑payment assistance or favorable loan terms, potentially improving the overall cost of borrowing.

Because rates change daily, the best approach is to shop multiple lenders, compare APRs (which include fees), and consider locking in a rate when you find a favorable offer. A rate lock typically lasts 30‑60 days and protects you from market swings while you complete the underwriting and closing process.

This article provides general information and is not personalized financial advice. Consult a qualified mortgage professional to understand how current market conditions apply to your specific situation.