Fixed Rate mortgages offer the security and piece of mind of an interest rate that remains the same throughout the life of the loan. The borrower knows the exactly monthly payments for the entire loan term. Adjustable Rate mortgages usually have lower starting interest rates than their Fixed Rate counterparts.

The most important factor is the actual monthly payment. Feeling comfortable with the payment is more important than feeling comfortable with the rate.

Your rate will be determined by many factors, the main 3 are:
- credit score
- loan to value, what percentage of the value of home will you be borrowing
- how many lates on current mortgage/rent in last 12 months

Other variables, or addons as theyre called since they add to the rate, are whether the property is rural, will be live in by borrower, type of house(i.e. conde, mobile, berm, single family), type of documentation to be used to qualify for loan as well as each program having their own starting or addon rate...So when you call and ask, "what rate can I get?" know upfront the person on the other end will need alot of information to give you an accurate, honorable interest rate...If he doesn't have all that information and gives you a rate, don't get upset when he can't honor it...

Although the market rate is always fluctuating, once you lock into your interest rate, you have a set amount of time for your mortgage to close. As long as you close within that period, your mortgage interest rate will be the rate that you locked into.

Mortgage interest rates change throughout the day on a daily basis. They can go up or down and change as frequently as the market changes. Interest rates are an important factor in determining your mortgage payment. Interest rates vary accoding to what home loan program you choose that is right for you. Usually an ARM, adjustable rate mortgage, is going to be lower than a fixed rate. Consult your mortgage broker to get the best rate you can qualify for.

Interest Rates consist of two parts, a margin and an index. The index is a regularly published rate that can be based on several different market indicators. The margin is the portion of the rate that is added on by the lender. This is not as relevent when you have a fixed rate mortgage, however with any Adjustable Rate Mortgage it is very important. When your rate does adjust it will be based on the fluctuations of the particular index your rate is based on.

Most interest paid on a mortgage is tax deductable. this is another benefit to consolidating your credit card debt and other interest baring accounts into a mortgage, so you can claim the dollars you pay in interest rather than take the loss entirely.