Many factors impact the cost of owning a home, such as your mortgage principal, property tax bill, homeowners insurance premium, and — this is a big one — your mortgage interest rate. We’ll discuss what determines mortgage rates. That way, you can better understand the details you can’t control and tackle the ones you can.
What is a mortgage interest rate, and why does it matter?
Your mortgage interest rate is the price your lender charges to issue your home loan. “Mortgage interest rates are really important for home buyers because they directly affect how much you pay each month,” said Jeanine Thomas, founder and president of Sarasota Mortgage Group LLC via email. “When rates are lower, your monthly payment is less, which makes buying a home more affordable for you.”
Laura Gariepy | Yahoo Finance