Mortgage Calculators One of the most important aspects to successfully obtaining a mortgage is getting the best interest rate. For most homeowners, this means securing the lowest, fixed interest rate. To most people it appears that mortgage rates seem to change without explanation. In reality mortgage interest rates move up or down based on a number of different factors. Changes in the yield of the 10-year Treasury bond is thought to be one of the best indicators in determining whether mortgage rates will rise or fall.
Mortgage Rate Basics
The lender that funds your mortgage loan is called the originator. In most situations originators are financial institutions such as banks or credit unions. When your mortgage is funded, the amount you borrowed is transferred from the originator to you. You then give the money to the seller of the home you are buying.
Once your morgage has been funded, the lender can either keep your mortgage and mke money off the interest you pay each month or sell your mortgage on the secondary market. If the mortgage is sold, the lender recovers the mortgage amount that can be used to make loans to other homebuyers.
The following are national mortgage rate averages.
| Average National Mortgage Interest Rates as of September 16,2007 | ||
| Mortgage Type | Average National Rate | Payment Per 300k Financed |
| 30 Year Fixed | 6.06 % | $ 1,680.85 / month |
| 15 Year Fixed | 5.74 % | $ 2,353.67 / month |
| 5/1 ARM | 5.93 % | $ 1,610.46 / month |
| 3/1 ARM | 6.19 % | $ 1,564.94 / month |
| National Average Home Loan Rates as of December 27,2007 | ||
| All calculations are for illustration purposes only. Mortgage Loan Calculator accepts no liability for lender inaccuracies and does not guarantee these exact rates or savings. | ||