Things That Can Drive Your Mortgage Rate Higher Mortgage lenders everywhere typically offer the same set of mortgage programs with both conventional loans underwritten to Fannie Mae and Freddie Mac guidelines to government-backed loans such as VA, FHA and USDA programs. And while all lenders compete for your mortgage with the best combination of interest rate and closing costs, there are some things that will make your interest rate go higher than they otherwise would be. What are they? Your credit score can cause a rate to be higher. Borrowers with a credit score of at least 740 are offered the best combination of rate and downpayment requirements while those scores as low as 620 will have a higher rate and might be required to have a higher down payment. If you�re buying an investment property, rates for those will be higher compared to financing a home as a primary residence. Lenders know that should borrowers experience some sort of financial duress, the investment property will mo...