Bank Statement Loan Rates: Why Brokers Are Your Go to Source

Your Financial Profile Matters

• Credit Score: Your credit score is a major driver of interest rates. The higher your score, the lower your rate. Bank statement loan lenders typically consider the middle score of three credit bureaus, and if you’re applying with a co-borrower, they’ll focus on the lower middle score.
  • Pro Tip: If your score needs improvement, work on boosting it before applying. This could save you thousands over the life of your loan.
• Down Payment: A 10% down payment may get you in the door, but a larger down payment can lower your Loan-to-Value (LTV) ratio and secure better rates.

Property Characteristics Impact Rates

• Primary Residence: Loans for primary homes often come with the best rates.
• Second Homes & Investment Properties: Expect slightly higher rates for these, as they’re considered riskier.

Flexible Loan Terms Tailored to You

Bank statement loans offer options such as:

• 30- or 40-Year Fixed Terms: Fully amortized for predictable payments.

Points, Buydowns, and Customization

Borrowers can customize their loan by paying discount points to reduce their interest rate or opting for no origination points with a higher rate. Comparing side-by-side scenarios with your broker helps you choose the most cost-effective option.

The Broker Advantage: Access to Competitive Rates

Not all lenders evaluate risk the same way, meaning interest rates can vary widely. Specialized mortgage brokers, however, have the tools and connections to shop across multiple lenders to secure competitive rates. Their expertise ensures that you’re not just settling for a loan but getting one that fits your unique financial picture.