What is Mortgage Rate and how does it affect people buying houses?

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4 Responses to “What is Mortgage Rate and how does it affect people buying houses?”

1. mazziatplay on: 2 December 2009 at 2:54 pm

   A mortgage is a loan that home buyers take out to buy a property. The rate is the amount of interest they are charged on that loan. The lower the interest rate, the lower the payment. As interest rates rise the payments become more expensive.

   Borrowers have to qualify to be able to make the payments based upon their credit history, income, and available cash to pay the down payment and closing costs.

   Rising interest rates mean that people who could qualify at the lower rate may not be able to qualify at a higher rate.
2. Mike on: 2 December 2009 at 2:54 pm

   A mortgage is a type of loan you get to buy a house.

   The rate is the amount of interest you pay for borrowing the money. The higher the interest rate, the higher the payment, and the less you can afford.
3. ladyellei on: 2 December 2009 at 2:54 pm

   Mortgage is a loan to buy houses. If you default on the mortgage, the bank takes your house. If you comply with the terms of the mortgage, you end up owning the house. It’s a way for people to buy houses who do not have all the cash upfront.

   Lower mortgage interest rates are favorable to buyers. It means you spend less money on your house. Not everyone qualifies for a favorable rate. The better your credit score the lower your rate (which is excellent) because you spend less money on the mortgage. If your credit is terrible, the you are a higher credit risk to the bank, the higher the rate and you end up paying more for the same thing. Banks need assurances that you are serious about paying off your loan.

   for more info:

   http://en.wikipedia.org/wiki/Mortgage
4. Mortgageman on: 2 December 2009 at 2:54 pm

   Mortgage is a loan for a house. Mortgage Rate is the interest rate. If you borrow $100,000 @ 6% and pay it back over 30 years, your payment will be $600.