Evaluate your mortgage interest rate
Use home equity without losing your low rate, or refinance and save.
What is a mortgage interest rate?
The interest rate is the amount charged by lenders for borrowing money. It's the main cost of the loan. It directly affects your monthly mortgage payment, with higher rates meaning higher payments and vice versa.
The rate can be:
- Fixed, staying the same throughout the loan term, or
- Adjustable, changing over time (called an "ARM")
Your interest rate is shown on your onilne lender account or in your monthly mortgage statement.
Why is your interest rate important?
Mortgage interest rates are important because they directly impact the cost of borrowing money from your home. Even a slight difference in interest rates can significantly affect your monthly mortgage payment and the total amount you'll pay over the life of the loan. It also helps determine which home equity product is right for you, whether you should prepay your mortgage principal, and which uses of equity make sense for you.
Did you know?
Mortgage interest rates in the United States
$1,000the typical increase in a monthly mortgage over the past 3 years.
91.8%homeowners with an interest rate below 6%.
59.7%homeowners who have lived in their home 4 years or less.
Source: Redfin, "High mortgage rates lock in homeowners"
