Understanding how your loan works can possibly save you money in the long run.
Good news! As of close of business on July 1st of this year, fixed-rate mortgage interest rested at 4.14%.
In other news, even with a perfect credit score, this will still not be the interest rate you’ll end up with for your home loan.
There are a lot of factors that go into determining how high (or low) mortgage interest rates will go. The buying and selling of Mortgage-Backed Securities make up a large part of the “cost of lending money.” The simple explanation behind Mortgage-Backed Securites (MBS) is that your loan may be sold by your lender, along with a group of other loans, to a securities broker who will bundle them and sell them on the open market to investors, who make their money either from trading, or by money brought in through payments and equity.