Mortgage Rates: Everything You Need to Know (2022)

Mortgage Rates

If you’re looking to buy a home soon, mortgage rates are going to be something that you’ll want to pay close attention to. It may seem insignificant, but a mortgage rate differing by only a few percentage points can ultimately make or break your home buying decision.

What Are Mortgage Rates?

When you go to buy a house, unless you’re paying it all in cash, you’ll likely need to take out a mortgage. A mortgage is simply a loan from the bank that you’ll need to repay over time. Typically you will put up 20% of the total price (the down payment), and the bank will provide you with the remaining 80%.

Important Mortgage Rate Terms

Interest rates on your mortgage loan are some of the most important considerations, but here are some other important home buying terms to also keep in mind: 1. Collateral 2. Principal and interest 3. Tax 4. Insurance

What Affects the Mortgage Rate?

Despite your best efforts, some factors affect your mortgage rate that you have no control over. Here are some things concerning your home mortgage rate that you have no control over: 1. The Overall Economy 2. Inflation 3. Job Growth 4. Federal Reserve Actions 

How Can You Lower Your Mortgage Rates?

Here are some factors lenders look at to determine the rates that will go on your mortgage loans:  1. Credit Score 2. Loan-to-value Ratio 

What Are Mortgage Rates Today?

If you’re looking to buy a house right now, you’ll want to know what current mortgage rates are like. Here’s some data from Bankrate about current rates:  1. Average 30 year fixed interest rate: 3.25% 2. Average 15 year fixed interest rate: 2.52%

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