When considering the purchase of a new home or investment property or contemplating the refinance of your existing home loan, it’s best to familiarize yourself with how financing changes things. Current mortgage interest rates have a major influence toward your overall purchasing power. It is important to obtain a mortgage with an interest rate that suits your circumstances. Options for financing your property depend on your personal financial situation and your unique desires.
The interest rate is the rate at which interest is paid to a lender by the borrower for use of loaned money such as a mortgage. Higher interest mortgage rates simply mean that your monthly mortgage payments will be greater than financing at a time when interest rates are lower.
An adjustable-rate mortgage differs from a fixed-rate mortgage in many ways. This interest rate changes periodically, typically in relation to other factors. Monthly payments may go up or down during the period of your ARM loan. You may consider refinancing when interest rates are low if you have a variable interest mortgage rate.
Shopping for a fixed interest rate mortgage may save you a substantial amount of money. Future interest rates will have no impact on your loan, meaning your monthly mortgage payments for principal and interest will not increase. The fixed rate does not change during the period of your loan, which is usually 15 to 30 years.
Many different types of mortgage interest rates are available. Choosing your mortgage and type of interest rate may be the most important financial decision you will make. Call a lender today to find out the type of loan that will work best for you.
Information courtesy of Intermountain Multiple Listing Service. Information provided by IMLS is deemed reliable but not guaranteed. IDX information is provided exclusively for consumers' personal, non‐commercial use, it may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. IMLS does not assume any liability for missing or inaccurate data.