> ## Documentation Index
> Fetch the complete documentation index at: https://cameron.mintlify.site/llms.txt
> Use this file to discover all available pages before exploring further.

# Rate Factors & Pricing Adjustments

> Understanding how lenders price self-employed mortgages and what affects your rate

Self-employed mortgage rates aren't one-size-fits-all. Lenders start with a base rate and apply adjustments based on your specific risk profile. Understanding these factors helps you anticipate your rate and identify ways to improve it.

## How Pricing Works

Lenders begin with a base rate for their self-employed mortgage program, then add or subtract adjustments for various risk factors. These adjustments are typically expressed in percentage points or basis points (0.01%).

**Example rate build-up:**

| Factor               | Adjustment |
| -------------------- | ---------- |
| Base rate            | 7.00%      |
| Credit score (680)   | +0.50%     |
| LTV (85%)            | +0.25%     |
| Investment property  | +0.50%     |
| Loan amount (\$1.2M) | +0.25%     |
| **Final rate**       | **8.50%**  |

## Common Pricing Adjustments

**Credit score:**

| Score Range | Typical Adjustment |
| ----------- | ------------------ |
| 760+        | -0.25% to 0%       |
| 720-759     | 0%                 |
| 700-719     | +0.25%             |
| 680-699     | +0.50%             |
| 660-679     | +0.75% to +1.00%   |
| 620-659     | +1.00% to +1.50%   |

**Loan-to-value:**

| LTV          | Typical Adjustment |
| ------------ | ------------------ |
| 70% or below | -0.25%             |
| 75%          | 0%                 |
| 80%          | +0.125%            |
| 85%          | +0.25%             |
| 90%          | +0.50%             |

**Occupancy type:**

| Type                | Typical Adjustment |
| ------------------- | ------------------ |
| Primary residence   | 0%                 |
| Second home         | +0.25%             |
| Investment property | +0.50% to +0.75%   |

**Loan amount:**

| Amount        | Typical Adjustment |
| ------------- | ------------------ |
| Under \$1M    | 0%                 |
| \$1M - \$1.5M | +0.125% to +0.25%  |
| \$1.5M - \$2M | +0.25% to +0.50%   |
| Over \$2M     | +0.50%+            |

## Other Factors That Affect Pricing

* **Property type** — Non-warrantable condos, 2-4 units, and mixed-use may add 0.25-0.50%
* **Interest-only** — Typically adds 0.25-0.50%
* **Cash-out refinance** — Adds 0.25-0.50% versus purchase or rate/term refinance
* **Self-employed tenure** — Less than 2 years may add to rate or limit availability

## Improving Your Rate

Factors you can control before applying:

* Increase credit score by paying down balances
* Make a larger down payment to reduce LTV
* Pay discount points to buy down the rate (typically 1 point = 0.25% rate reduction)

Factors to shop for:

* Compare base rates across lenders
* Find lenders with favorable adjustments for your profile
* Look for promotional pricing or relationship discounts