An Overview of Current Home Mortgage Rates
By Ben Home

What Does “Mortgage Rates” Mean?

Typically, when newscasters and financial advisors talk about “interest rates” or “mortgage rates,” they’re referring to the average rate for a 30-year-term, fixed-rate mortgage.

What Do Higher Rates Mean?

Higher rates also mean less people are borrowing and if less people are borrowing, then less people are spending and if less people are spending, then the economy can find itself in a slump. High interest rates promote saving and frugality while lower interest rates tend to promote spending.

Are Rates “High” Right Now?

Historically, interest rates have rarely been as low as they are today.

What Does “Locking in a Rate” mean?

Typically, most mortgages are what’s called fixed-rate mortgages. This means the interest rate on the mortgage stays the same throughout the duration of the mortgage.

Ideally, homeowners opting for a fixed-rate mortgage want to “lock” in a rate while interest rates are low, rather than high.

Current Home Mortgage Rates
By Elizabeth Morgan

There are number of options available when talking about current home mortgage rates. You can opt for pension-linked mortgages. If you have an interest-only mortgage then you will only be paying interest on your loan. This type of loan is designed for those approaching or over retirement age who cannot take out a long-term mortgage. Most lenders will allow another interest-only loan if you move, and may offer loan facilities to your relatives if you should die and they wish to keep the property.

The lender agrees to charge below the commercial interest rate for up to the first five years, and then charges the standard interest rate at the end of this period. This type of loan is for those who feel able to gamble on changes in interest rates. In these loans the interest rate is fixed at the start of the loan, either for a number of years or the whole term.

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