How Interest Rates Work
An interest rate is the cost of borrowing money. With a mortgage, interest is paid over time as part of your monthly payment.
Why Interest Rates Matter
Even small changes in interest rates can affect your monthly payment and the total amount you pay over the life of the loan.
This is why buyers often pay close attention to rates when planning a purchase.
What Influences Mortgage Rates
Mortgage rates are influenced by many factors, including the broader economy and market conditions.
Individual factors such as credit and loan type can also affect the rate you are offered.
Rates Change Over Time
Interest rates move regularly and can change daily.
This is normal and does not mean you missed the right moment. Most buyers focus on finding a rate that fits their budget rather than timing the market.
What Comes Next
Explore more guides in the Learn Hub or try the Home Readiness Check™ to see how prepared you are for buying a home.