Understanding Mortgage Rates

How Mortgage Rates Work

Mortgage rates are the interest rates charged on home loans. They can vary significantly based on several factors including your credit score, loan amount, loan term, and market conditions.

Factors Affecting Mortgage Rates

• Credit Score: Higher credit scores typically result in lower interest rates.
• Loan Amount: Larger loans may have different rate structures.
• Loan Term: Shorter terms often have lower rates but higher monthly payments.
• Market Conditions: Economic factors influence overall rate trends.

Fixed vs Variable Rates

Fixed rates remain constant throughout the loan term, providing stability and predictability. Variable rates can fluctuate with market conditions, potentially offering lower initial rates but with less certainty.

Understanding these factors can help you make informed decisions when choosing a mortgage product that suits your financial situation.