What is a Mortgage Rate?
A mortgage rate is the interest rate on a mortgage loan. It is the amount that lenders charge on the loan for borrowing funds for your property. Based on the type of loan you are trying to acquire, the mortgage rate may vary. You may decide on locking in with a fixed mortgage rate, meaning that the rate will not change for the period of your loan. If you choose to instead have an adjustable mortgage rate, the interest varies from month to month. However, there are limitations to the amount that the mortgage rate can fluctuate within an adjustable. This is a means of protection from rates that are rising to high within the given time of payment.
Choosing your mortgage rate is a tough decision, but one that is best and often considered with the guidance of a knowledgeable representative. We have many qualified loan officers with whom you may speak to and see if now is the right time to purchase or refinance your home.
You may also choose to use the Payment/Amortization or Annual Percentage Rate calculators to see how different mortgage rates would affect the monthly payments that you would owe based on the loan amount you may be looking for.