Mortgage pricing refers to the process of determining the interest rate and fees associated with a home loan. This pricing is influenced by various factors, including the borrower's credit score, the size of the down payment, and current market conditions. Lenders assess these elements to decide how much risk they are taking on, which ultimately affects the cost of the mortgage. Additionally, mortgage pricing can vary between different lenders and loan types. For example, fixed-rate mortgages typically have higher initial rates compared to adjustable-rate mortgages, which may start lower but can change over time. Understanding these differences helps borrowers make informed decisions when choosing a mortgage.