Mortgage Rates | Current Fixed and Adjustable Mortgage Rates

June 28, 2012 - PRLog -- Mortgage rates are always changing in regard to interest rates as well as discount points and buy downs. The current mortgage rates whether fixed or adjustable are available depending on your choice of which is right for you.

For current mortgage rates and other mortgage rate information: http://wealthsmith.com/mortgage-rates.htm

Choosing a mortgage for a fixed or adjustable rate mortgage is a big deal in the long term of either of these mortgage programs. If you choose a fixed rate mortgage you still have options of selecting a payback term of 10, 15, or 30 years. The shorter the term the better the interest rate will be. Borrowing for less time gives the lender the advantage of making more loans with the same capital expenses afford to them, therefore you get a better mortgage loan rate.

Fixed and adjustable mortgage plans are an important part of selecting what is best for you and your family. A fixed mortgage the interest rate does not change for the life of the loan. Whereas the adjustable rate mortgage will start off in the first year with a lower interest rate and will escalate over the next 5 to 7 years in increments set out in the loan agreement.

Which mortgage plan is right for you? If you plan to buy a home and live there indefinitely, the wiser choice in mortgage plans is to choose a fixed rate mortgage. If you know ahead of time that you will only be living in an area for a few years, then you may want to choose an adjustable rate mortgage.

Mortgage rates are also based on your credit score. A high credit score obviously gives you the best mortgage interest rate terms and if you barely qualify for a mortgage loan based on a lower credit score, your mortgage interest rate will be slightly higher due to a more questionable credit history.

It is always best to find out ahead of time what your credit score is, so that when it is time to apply for a mortgage loan you can be sure that there are no incorrect credit items on your report.

Mortgage rates fluctuate on a daily basis and typically interest rates will be slightly higher at the beginning of the week and will be lower toward the end of a week provided there are no sudden changes in the overall economic factors that influence mortgage rates. Watch mortgage interest rates for a couple of weeks to see how they are trending by the day and try to lock in your interest rate on the best day of the week.

Mortgage loans also carry what are known as discount points and buy downs. Discount points are generally a fee that a mortgage lender charges to allow a borrower to pay a lower interest rate than by not paying any discount points. For example a borrower is looking to lock in a mortgage interest rate and they have the option of selecting between a fixed rate of 5% or they could agree to pay a 1% discount point and get a fixed interest rate of 4 .75% instead of the 5% rate.

A discount point is equal to 1% of the total amount borrowed. This option of paying a discount point aids in reducing the monthly payment amount and can make the mortgage a bit more tolerable each month. Adjustable rate mortgages offer this same discount fee in initiating the terms of your mortgage agreement as well.

Be a wise mortgage shopper and explore all your options and offers before committing to a long term mortgage loan.