Knowing what the interest rate is probably one of the critical pieces of information you need to know when deciding on a mortgage. Be sure to find out that information and make sure you completely understand the consequences of whatever interest rate is part of this mortgage.

It's good that they cover 1% for the first 12 months, but what happens after that?

Also while your credit score is great, you have $27k in debt and $40k in annual income so that debt to income ratio isn't good. That's another reason why your interest rate might not be favorable.