How interest rates affect mortgage payments
Gain a better understanding of what you can expect to pay monthly.
When you take out a mortgage, it is important to understand how interest rates can affect your monthly payments. UNFCU AVP, Mortgage Sales, Chip Allen, will go over the different types of mortgage interest rates, which items may affect your interest rate, what APR is, and more.
In summary
- A fixed rate remains the same for the life of the loan. A variable rate usually remains fixed for an initial period, then adjusts periodically thereafter.
- The down payment, loan amount, loan type, loan term, discount points, and your credit score may affect your US mortgage interest rate.
- An annual percentage rate (APR) is the annual rate charged for borrowing money from a financial institution.
- The only way to accurately compare your mortgage options is to request a loan estimate from a mortgage representative.
- A pre-approval can help you better budget for your mortgage. Learn more about the benefits of pre-approval.
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