What Goes Into A Mortgage Interest Rate?
by cfmortgagecorporation | Jul 23, 2021 | Educational | When you’re thinking about buying a home, you’ll want to start looking at mortgage options to see what may work for your needs. If this is your first time (or maybe even 2nd or 3rd!) buying a home, you might be a little overwhelmed with understanding mortgage rates and how your final rate is determined. Every lender breaks it down a little bit differently, so how do you determine the best mortgage option for you? Contacting your local mortgage lender is the best place to start, but this article will outline at a high level what you need to know about mortgage rates. What is a Mortgage Interest Rate? When you buy a home and get a mortgage through a lender, you’ll be expected to make monthly payments to ‘repay’ the sum that you borrowed. A mortgage interest rate is a percentage of this sum or loan balance that is paid to the note holder along with your principal payment. Interest rates, like the stock market, fluctuate daily and wi