Mortgage rate?

Question

can you explain 10 yrs fixed, 20 yrs fixed..... what does it mean...

How much average mortgage rate at this time...?? Is mortagge rate lower or higher than prime rate???

Answer 1

it means the rate is fixed for ten, twenty, or thirty years



the average is not relevant because the rate you recieve depends on your credit history



the prime rate is the best rate, so it is always the lowest



protip: if you have to ask these kinds of questions, you're probably not ready for home ownership

Answer 2

A 10 year mortgage is amortized (that means the payments are set up so that it pays off) over 10 years. Same with a 15, a 20, a 30, and a 40 year loan. There are also loans that are fixed for a period of time (usually 3/5/7,or 10 years that are amortized over 30 years but become adjustable rate loans after the fixed period of time.



The average on a 30 year fixed rate loan today is about 6.625% for a 30 day lock at par (no buy down). The prime rate right now is 8.25. 30 year mortgages are based not upon the prime rate but upon bond prices.

Answer 3

It means your interest rate will not change over the period of the loan, and the 10, 20, 30 is how many years you will be paying on the loan.



Best place to get current rates is finance.yahoo.com.

Answer 4

The rate will stay the same or "fixxed" for the that length of time. Its always the best way to go. Only suckers get talked into adjustable rates..

Answer 5

complicated stuff. try searching at google or bing. that will help!