Mortgage Rates - Check Current mortgage rates

Use the mortgage rate calculator provided below to check the current mortgage rates with different lenders. You may like to see different rates with different lenders.

Basic information on Mortgage rates

The party that provides you the mortgage loan (your mortgage lender) is called the originator. An Originator can be a bank, credit union, or other type of financial institution. When the mortgage loan is approved, the money flows out of the originator's hands and into yours (within few days of approval). You can then use the money to buy your dream home.

Once the money is transferred to you, the originator can either keep the loan in its portfolio or can sell it on the secondary market. In case if the originator plans to keep the loan, the interest paid by you is its earning through this loan. But in case if the loan is sold on the secondary market, the originator replenishes its funds which can be used to make more loans to other mortgage loan seekers. This process helps the fund flow and it makes sure that loan originators never run out of money for new homebuyers.

Mortgage rates can be classified into two types:

1. Fixed mortgage rates: a fixed rate mortgage is one on which borrower is charged a fixed rate of interest i.e. interest rate remains constant for the duration of the loan and the duration of the loan is also fixed. In simpler words, the interest rate remains constant during the whole life of the mortgage. Many mortgage buyer prefer fixed rate mortgages because they know exactly what will be their interest and principal payments which are very useful in planning their budget.Homebuyers who seek security in all areas will often go for fixed rate mortgage.
2. Adjustable rate mortgage (ARM): An adjustable rate mortgage, also known as ARM, unlike fixed rate mortgage, here the interest vary. In this type of rate varies based on one or more indexes such as one-year treasury bills The interest rate varies based on one or many indexes and different lenders uses different indexes for adjusting the rates. Examples of some of these indexes are:
   • Treasury notes and bills.
   • The average interest rate paid on jumbo certificates for deposit.
   • The Federal Housing Finance Boards National Average mortgage rate.
   Again, going for ARM is more of a personality choice than any logical calculation. Homebuyers who are more adventurous might want to try the adjustable rate.

Mortgage rate calculator