Fixed Rate mortgages offer the security and piece of mind of an interest rate that remains the same throughout the life of the loan. The borrower knows the exactly monthly payments for the entire loan term. Adjustable Rate mortgages usually have lower starting interest rates than their Fixed Rate counterparts.

Although the market rate is always fluctuating, once you lock into your interest rate, you have a set amount of time for your mortgage to close. As long as you close within that period, your mortgage interest rate will be the rate that you locked into.

Mortgage interest rates change throughout the day on a daily basis. They can go up or down and change as frequently as the market changes. Interest rates are an important factor in determining your mortgage payment. Interest rates vary according to what home loan program you choose that is right for you. Usually an ARM, adjustable rate mortgage, is going to be lower than a fixed rate. Consult your mortgage broker to get the best rate you can qualify for.

Interest Rates consist of two parts, a margin and an index. The index is a regularly published rate that can be based on several different market indicators. The margin is the portion of the rate that is added on by the lender. This is not as relevant when you have a fixed rate mortgage, however with any Adjustable Rate Mortgage it is very important. When your rate does adjust it will be based on the fluctuations of the particular index your rate is based on.