Back to Glossary
Mortgage Rate
January 19, 2023
A mortgage rate is the interest rate on a mortgage. Mortgage rates are set by the lender and can be fixed, remaining constant during the loan period, or variable, varying with a benchmark interest rate. Borrowers' mortgage rates differ depending on their credit profile. Mortgage rate averages rise and fall with interest rate cycles, which can significantly impact the homebuyers' market. The mortgage rate is a significant issue for homebuyers wanting to finance a new home purchase with a mortgage loan. Collateral, principle, interest, taxes, and insurance are all considered. A mortgage's collateral is the home itself, and the principal is the loan's initial amount. Taxes and insurance vary depending on where the house is located and are usually an estimate until purchase.
Related Topics
10 Best Home Builders in Nashville, TN: Find Your Dream Home Today
Wesley Mortgage 2023 Year-In-Review
What Is a Property Tax Lien
What Is an Adjustable Rate Mortgage (ARM)?
Navigating the Process of Mortgage Modification
What Is Non-Recourse Lending?
What Is a Short Sale?
When Is the First Mortgage Payment Due?