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The above rates are based on good credit and no extenuating circumstances. |
What are your rates?
We get this question very
often, truth is current mortgage interest rates
are based on your loan profile. A person
with good credit will receive a better
rate than someone with a few lates.
Mortgage interest rates are also based
on the type of loan program you choose.
Below is some information about rates
and what they mean. You can also check
out our
mortgage interest rate calculator. |
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How are mortgage interest rates
determined?
Mortgage rates are
mostly determined by the yield on the 10yr
Treasury note. When the Fed's benchmark short-term rate was 1%, the 10-year yield was 4.69%and the average 30-year mortgage
interest rate was 6.25%.
Other factors such as housing market and
economic trends may also affect where
rates are at that time.
What is APR?
APR stand for Annual
Percentage Rate. The annual cost of a
loan to a borrower. Like an interest
rate, the APR is expressed as a
percentage of the loan amount. Unlike an
interest rate, however, it includes
other charges or fees to reflect the
total cost of the loan. The Federal
Truth in Lending Act requires that every
consumer loan agreement disclose the APR
in large, bold print. Since all lenders
must follow the same rules to ensure the
accuracy of the APR, borrowers can use
the APR as a good basis for comparing
the cost of loans. For example an auto
loan may advertise that their APR is 2%,
In reality it is 0% loan with cost added
to it.
What are Prime Interest Rates?
Prime interest rate is the rate charged by
mortgage companies to their most creditworthy customers. A less credit worthy customer may be offered a loan at the prime rate plus anywhere from 2 to 10 percent. Borrowing at below-prime also occurs, but is less common and usually applies to businesses, not individual consumers. The Federal Reserve determines whether to lower or raise the prime rate based on a variety of economic factors. Many consumer loans, such as auto, home equity, mortgage and credit card loans are based upon the prime rate. Building and maintaining a good credit history are two of the most important qualifications for prime-rate borrowing.
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Buying A Home
