Mortgage Rates
It's important to shop around to find the mortgage and mortgage rate that's right for you. Contact lenders at banks and credit unions, as well as mortgage brokers, to find the best deal.
You'll have to choose between a fixed- or adjustable-rate mortgage. You'll also have to choose your loan terms. Keep in mind, the lowest monthly payment or longest loan term may not always be the best choice for you. You should also consider the overall cost of the loan, including fees and points, by comparing the APR.
Mortgage rates change frequently. With many lenders, you can lock-in the rate, which allows you to complete the mortgage process knowing the exact interest rate you'll get when you go to settlement on your home. If you believe the rates will increase while your mortgage is being processed, you might lock-in the current interest rate.
If you choose to not lock-in your rate, you can float the rate. This means that you can follow market rate trends and choose to lock-in when the rates are more favorable. However, you will have to lock-in your rate at the end of the float period, which is usually 72 hours before closing.
Shop around for mortgage rates
Even a fraction of a percent can make a big difference in your mortgage payment. Our Primary Mortgage Market Survey® has regional mortgage rate information, is updated weekly, and is one of the most reliable sources of mortgage rate trends.
What makes a mortgage rate change?
It's a complex question without a simple answer, but, in general, mortgage rates can be impacted by:
- The health of the economy – generally, indications of a weakening economy lower mortgage rates and indications of a robust economy raise interest rates.
- Inflation – when inflation is higher than normal, interest rates tend to increase.
These are just two of a number of impacts on mortgage rates, but they can help you understand the changes in mortgage rates as you shop around.
When trying to decide if you should lock-in your interest rate, talk to your real estate and mortgage professionals to try to understand if mortgage rates are likely to change while you are finalizing your mortgage. Remember, they do not know for sure. They can only speculate based on the trends they have noticed.