Interest Rates and How They Work

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  • Everyone loves asking “what's the interest rate now?” That’s like asking what cars cost now! Interest rates on home loans vary depending on several factors.

    Interest Rates on Home Loans

    The interest rates we are seeing have not been this low in over 50 years! I wish I could tell you how long they will stay this low but my crystal ball is in the shop. What we do know is that interest rates tend to go up much faster than they come down and they won’t stay this low forever. This is not meant to rush you into buying a home, that is a decision you need to make after getting educated and talking with your Mortgage Professional, but if the time is right for you, you’ll be able to get an interest rate that’s near an all time low.

    You typically cannot get the rates advertised online or in advertisements because of the many variable factors we’re discussing.

    Your loan payment interest rate will vary depending on what type of loan you use.  See Types of Loans: FHA, VA, USDA… OMG! Your down payment amount will also directly affect your rate. Less than a 20% down payment has the greatest effect on rate.

    A great rate on the wrong loan can be disastrous. Have an experienced Mortgage Pro help you choose the right mortgage.

    Your location can also affect your rate if it’s in an area that’s deemed to be a “declining market” regarding home values.

    Rates move up and down daily for most loan types but you can get a “rate lock” that guarantees you a specific rate.  Once you have an accepted offer, ask your Mortgage Professional if it’s the right time to lock in your interest rate.

    Interest rates on home loans rise and fall along with the stock market – as it drops, so do interest rates.

    Home Value: $
    Loan amount: $
    Interest rate: %
    Loan term: years
    Start date:
    Property tax: %
    PMI: %
    Output parameters »
    Free Mortgage Calculators

    Thinking of buying a home in the Portland, Oregon area? Checkout our First Time Home Buying Classes!

    Interest Rates and How They Work was last modified: May 1st, 2018 by David Axness

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