Mortgage Loan Rates

There are two types of mortgages – fixed mortgage and adjustable rate mortgage (ARM). It is also called as variable rate of mortgage. In fixed rate mortgage, the rate of mortgage will remain same throughout the life time of the mortgage. But in adjustable rate mortgage, the interest rate can be changed at the intervals. In this case the interest rate depends on the state laws, nature of the loan, loan amount and most importantly the lending company and the type of the loan.

Basically the interest rates are governed by the Federal Reserve Board then it transfers to the lending companies. They have to make their own adjustments accordingly. Mortgage interest rates can also be influenced on the basis of the economic factors of the country like inflation rate, and growth rate.

Interest rates depend on the loan type also like commercial loan, FHA loan and VA loans. It also depends on the personal credit rate. If a person’s credit rate is very good, he may get a loan on very low interest rate. In case of second mortgage, it is always the rates are high than the first mortgage.

Now a day, these things are available through the internet sites. Comparison and reviews of different mortgage loan rates offered by different lenders. These lenders update their information on a daily basis for the benefit of the readers. Many internet sites provide mortgage rate calculators also to find out the correct figure of interest, some sites provides monthly installments and penalties.