Understanding Mortgage Rates

What is a Mortgage Rate?

A mortgage rate is the going rate of interest charged on a mortgage. Rates are based on the most current lender information and may vary based upon individual circumstances. Mortgage rates rise and fall with interest rates and can affect the homebuyers’ market. In most cases, a mortgage lender determines the rate.Rates are based on the most current lender information and may vary based upon individual circumstances. Rates can either be fixed, variable, stay the same for the term of the mortgage or fluctuate with a benchmark interest rate. A mortgage broker will work with 30 different lenders shopping around for the lowest mortgage rate. As part of this process we come back with multiple options for you, saving you valuable time and there is no cost to you for our service, we get paid by the lenders!

A Guide To Understanding Internet Mortgage Rates

With the internet at your fingertips, it’s easy to do a search on local mortgage rates. The challenge is understanding if the rate is a restrictive special, for owner occupied property, or only available on high ratio mortgages.

In today’s market there are a variety of pricing options depending on these. Restrictive specials such as a low rate basic or non-portable mortgage, may lead to larger payout penalties or inability to move your mortgage if you a sell and buy.  These work and you can save money if you know you’re going to be there until in the end of the mortgage term. Often the low rates options are not for rental properties. Not all lenders offer rental purchases and also may have varied rates on rentals.

Lastly, there seem to be a lot of high ratio rate specials available if you’re putting less than 20% down which may seem opposite of what used to be the norm of rate specials if you put more money down.

The key to understanding the rate being offered and if it fits depends on factors like this.  By aligning yourself with a broker that has all these products options and take the time to understand you, is really the key to getting the right overall mortgage.