Mortgage Interest Rates

I want to share with you a little bit of information I've learned on Mortgage Interest Rates. The interest rate you pay on a mortgage is the single biggest factor in your monthly payments. The higher the mortgage rate the more you will pay over the life of the home loan. There are two basic types of mortgage interest rates Fixed and Variable. For a fixed rate loan the mortgage interest rate is set when the loan is originated, and is fixed for the life of the loan. For variable rate loans, also called adjustable rate mortgages{ARM}, the interest rate can change over time. Often an adjustable rate loan can be obtained at a lower interest rate; however, you are accepting the risk that interest rates may go up in the future. A fixed rate loan may have a higher initial cost, but it protects you from future changes in mortgage rates.