When conducting loan consultations in the Savoy area, there are recurring questions that come up in order. The first common question is, "Who determines mortgage rates and how?"

Mortgage rates are not a single number set by a specific institution; they are the result of market formation. The most significant influence is the yield on 10-year Treasury bonds, along with the Federal Reserve's interest rate policy, recent inflation indicators, and the investment demand in the MBS (Mortgage-Backed Securities) market, all of which contribute to the rates published by banks.

The second frequently asked question is, "What are the current rates approximately?" Based on Freddie Mac PMMS data as of 2026, the average rate for a 30-year fixed mortgage is shown to be in the mid to high 6% range. The 15-year fixed rate is observed to be lower, in the low to mid 6% range.

The third question is, "Which is better, 30 years or 15 years?" This is a question that can only be answered differently depending on an individual's financial situation. If you want to lower your monthly payment burden, a 30-year fixed mortgage may be better, while a 15-year fixed mortgage may be more suitable if you can afford to pay off the total interest cost.

The fourth question is, "Is an adjustable-rate mortgage (ARM) risky?" An ARM offers a lower rate than a fixed rate for the initial few years, but after the adjustment period, the payment amount can change based on market rates. While it cannot be said that there is no risk, it can be a reasonable choice if you have a clear plan to stay for a short period.

The fifth question is, "How much does credit score affect the rate?" Recent market trends show that borrowers with higher credit scores tend to receive more favorable rates. However, the exact difference can vary depending on the lender, loan product, and down payment ratio, making it difficult to specify a particular number.

The sixth most common question is, "Why is DTI (debt-to-income ratio) important?" A lower DTI increases the likelihood of loan approval and often results in more favorable terms. If you have a lot of existing auto loans, student loans, or credit card revolving balances, your DTI may increase, making conditions less favorable.

Finally, the last frequently asked question is, "What can I prepare now?" For Korean households preparing for a loan in Savoy, it is practically helpful to check your credit report a few months before applying, refrain from unnecessary new loans or credit card issuances, and prepare down payment funds in advance. It is also important not to miss the process of obtaining and comparing estimates from various lenders.