Mortgage interest rate is the rate of interest charged on a home mortgage loan. In most cases, mortgage rates are based largely on mortgage-backed securities. Rates can be fixed or variable.
A fixed-rate mortgage is a home loan with a fixed interest rate for the entire term of the loan. That means that, once locked in, the rates will not fluctuate with market conditions.
Because fixed-rate mortgages are more predictable, most homebuyers prefer them over adjustable-rate mortgages. Though the rates are fixed, the actual amount of interest borrower pay with a fixed-rate mortgage will ultimately depend on the how long the loan is amortized.
The longer the term, the more interest that you pay. For example, if you opt for a 15-year term, you will pay less in interest than you would for a 30-year term.
Dream Home Lending would love to help you determine exactly how much a fixed-rate mortgage will cost you. Give us a call today!
