Definition
The interest rate on your home loan, which affects your monthly payments and the total cost of the mortgage over time.
What to consider
- Even a small rate difference can have a big impact over time.
- Monitor current rates to know if refinancing might help.
- Keep improving your credit to qualify for better rates.
Real world scenarios
- Devin secures a 3% mortgage rate, significantly cutting his monthly payment compared to higher-rate quotes.
- Melanie tracks market fluctuations and locks in a favorable rate before it rises again. Her timing saves her thousands over the loan’s lifetime.
- While exploring refinancing, Jamal compares lenders’ rates and closing costs, ensuring any new mortgage meets his financial goals.
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