ARM Calculator: Adjustable Rate Home Loan Calculator: Estimate 3, adjustable rate mortgage calculator.#Adjustable #rate #mortgage


Adjustable Rate Mortgage Calculator

Thinking of getting a variable rate loan? Use this tool to figure your expected monthly payments before and after the reset period.

Current ARM Mortgage Rates

Understanding Adjustable-Rates

The U.S. has always been the world capital of consumer choice. Visitors are often overwhelmed by the variety offered in our stores, supermarkets, and service industries. And the mortgage game is no different.

When making a major purchase like a home or RV, Americans have many different borrowing options at their fingertips, such as a fixed-rate mortgage or an adjustable-rate mortgage.

Almost everywhere else in the world, homebuyers have only one real option, the ARM (which they call a variable-rate mortgage).

What Are Adjustable Rate Mortgages?

An ARM is a loan with an interest rate that is adjusted periodically to reflect the ever-changing market conditions.

Usually, the introductory rate lasts a set period of time and adjusts every year afterward until the loan is paid off. An ARM lasts a total of thirty years, and after the set introductory period, your interest cost and your monthly payment will change.

Of course, no one knows the future, but a fixed can help you prepare for it, no matter how the tides turn. If you use an ARM it is harder to predict what your payments will be.

You can predict a rough range of how much your monthly payments will go up or down based on two factors, the index and the margin. While the margin remains the same for the duration of the loan, the index value varies. An index is a frame of reference interest rate published regularly. It includes indexes like U.S. Treasury T-Bills, the 11th District Cost of Funds Index (COFI), and the London Interbank Offered Rate (LIBOR).

Adjustable-Rates vs. Fixed-Rates

Adjustable rate mortgage calculatorEvery potential homebuyer faces this decision, and there are pros and cons to both kinds of mortgages. What you plan to do both in the near and distant future determines which loan arrangement will be best for you.

The APR of a fixed-rate mortgage (FRM) remains the same for the life of the loan, and most homeowners like the security of locking in a set rate and the ease of a payment schedule that never changes. However, if rates drop dramatically, an FRM would need to be re-financed to take advantage of the shift, and that isn’t easy at all.

An ARM is more of a roller coaster ride that you put your whole house on. It fluctuates with the real estate market and with the economy in general. The sweet five percent deal you have today could shoot up to eight percent if LIBOR goes up.

What Are The Common Reset Points?

The reset point is the date your ARM changes from the introductory rate to the adjustable-rate based on market conditions. Many consumers wrongly believe this honeymoon period of having a preset low monthly payment needs to be as short as it is sweet.

But nowadays, it is not uncommon to set mortgage reset points years down the road. Reset points are typically set between one and five years ahead. Here are examples of the most popular mortgage reset points:

  • 1 Year ARM – Your APR resets every year.
  • 3/1 ARM – Your APR is set for three years, then adjusts for the next 27 years.
  • 5/1 ARM – Your APR is set for five years, then adjusts for the next 25 years.
  • 7/1 ARM – Your APR is set for seven years, then adjusts for the next 23 years.
  • 10/1 ARM – Your APR is set for ten years, then adjusts for the next 20 years.

What is the Difference Between a Standard ARM Loan and Hybrid ARMs?

A hybrid ARM has a honeymoon period where rates are fixed. Typically it is 5 or 7 years, though in some cases it may last either 3 or 10 years.

Some hybrid ARM loans also have less frequent rate resets after the initial grace period. For example a 5/5 ARM would be an ARM loan which used a fixed rate for 5 years in between each adjustment.

A standard ARM loan which is not a hybrid ARM either resets once per year every year throughout the duration of the loan or, in some cases, once every 6 months throughout the duration of the loan.

What do Rates Reset Against?

ARMs are typically tied to one of the following 3 indexes:

  • London Interbank Offered Rate (LIBOR) – The rate international banks charge one another to borrow.
  • 11th District Cost of Funds Index (COFI) – The rate banks in the western U.S. pay depositors.
  • Constant maturity yield of one-year Treasury bills – The U.S. Treasury yield, as tracked by the Federal Reserve Board.

Who Are ARMS Good For?

Adjustable-rate mortgages are not for everyone, but they can look very attractive to people who are either planning to move out of the house in a few years or those who are counting on a significant raise in income in the near future.

Basically, if your reset point is seven years away and you plan to move out of the house before then, you can manage to get out of Dodge before the costlier payment schedule kicks in.

Others who will benefit greatly from the flexibility of an ARM are people who expect a sizeable raise, promotion, or expansion in their careers. They can afford to buy a bigger house right now, and they will have more money to work with in the future when the reset date arrives. When the reset happens if rates haven’t moved up they can refinance into a FRM.

Who Are ARMS Bad For?

ARMs are bad for worrywarts. If life’s little uncertainties make you feel queasy, you may worry about the future of interest rates every waking moment. But don’t worry – you won’t end up losing the farm (or your signed Don Drysdale baseball card) because ARMs have caps on them.

A cap is a ceiling, or a limit on the amount your loan rate can increase annually for the duration of the loan. Adjustable-rate mortgage caps are usually set between two and five percent, and they carry a maximum yearly increase of two percent.

That is not exactly risky proposition, but it can appear so to a non-gambler.

You can run the numbers in advance to estimate the monthly cost at different APRs. Our above calculator does this automatically based on the cap you enter.

Compare Your Options

Adjustable rate mortgage calculatorCompare IO ARMs or fixed, adjustable interest-only loans side by side. Adjustable rate mortgage calculator

Avantages And Disadvantages

  • Lower payments and rates early in the loan term, allowing borrowers to buy larger, more expensive homes.
  • ARM holders can take advantage of falling rates without lifting a finger, avoiding the inconvenience and high cost of refinancing, including a new set of closing costs and transaction fees.
  • It’s an affordable way for borrowers with limited funds to buy a house if they don’t plan on living in one place for a long time.
  • Rates and monthly payments can rise dramatically over the course of a 30-year commitment. A six percent ARM can skyrocket to eleven percent in as little as three years.
  • The first adjustment after your initial set period can be more shocking than any sticker you’ve ever seen because annual caps sometimes don’t apply to the first payments after the reset point arrives. Be sure to read the small print!
  • ARMs are complex agreements, and novice borrowers can easily be misled and bamboozled by slick talk about margins, caps, ARM indexes, and other industry jargon – particularly if the lender is somewhat shady.

Borrower Beware

ARMs are not for the faint-hearted. They offer a better life to those who want lower payments now in exchange for spending more down the road. But make no mistake, your monthly payments will likely increase when your rate is adjusted.

You must be prepared financially for the end of the honeymoon. Because caps often don’t apply to the one-time initial adjustment, you could see a worst-case scenario of your six percent rate adjusting to ten or twelve percent a year if interest rates in the overall economy shoot up.

If you found this guide helpful you may want to consider reading our comprehensive guide to adjustable-rate mortgages.

You can also download an ARM loan worksheet bring it to your financial institution. We offer versions in the following formats: PDF, Word Excel.


Adjustable Rate Mortgage (ARM), Quicken Loans, adjustable rate mortgage calculator.#Adjustable #rate #mortgage #calculator


Adjustable Rate Mortgage

Adjustable rate mortgage calculator

With Rocket Mortgage by Quicken Loans, our fast, powerful and completely online way to get a mortgage, you can find out which loan option is right for you.

Not comfortable starting online? Answer a few questions, and we ll have a Home Loan Expert call you.

Key Benefits

Get a mortgage rate as low as 3.50% (4.148% APR) with the 5-year adjustable rate mortgage.

  • Do you want to significantly reduce the cost of your mortgage?
  • Do you plan to move or refinance in the next 5, 7 or 10 years?
  • Do you want the lowest mortgage rate available?

If you answered yes to any of these questions, an adjustable rate mortgage might be right for you! Whether you choose the 5-year, the 7-year or the 10-year adjustable rate mortgage, you’ll get the lowest rate we offer and save thousands over a traditional fixed-rate mortgage during the initial fixed-rate period. Afterwards, the rate may change once per year.

Why you should choose Quicken Loans

  • Only Quicken Loans offers you the Closing Cost Cutter and PMI Advantage. Find out how these great options can help guide you to the best decision to meet your financial goals.
  • With more than 32 years of experience, we’ve designed a mortgage process that adapts to your needs.
  • Our powerful online tools, like MyQL Mobile, allow us to close your loan quickly. This app is exclusive to Quicken Loans clients and works with iPhone ® and Android™!

Other loans you might be interested in:

How It Works

Adjustable rate mortgage qualification requirements

  • Refinance up to 95% of your primary home’s value
  • Buy a home with as little as 5% down (primary home)

Cheapest Interest Rate Home Loans Online Mortgage Quotes, mortgage rate history.#Mortgage #rate #history


cheaper mortgages

affordable fixed rate

expert home lenders

Mortgage rate historyMortgage rate historyMortgage rate historyMortgage rate historyMortgage rate history

Mortgage rate history

We Specialize in low rate lending across the united states. Lowest Interest rates online!

To begin the process please fill out the form to the right.

Mortgage rate history

About Five Star Mortgages

Mortgage rate history Are you ready to start scouring the market and searching for your dream home? Or, perhaps you are going to have your dream home built so it will have all of the features you have always wanted. Regardless of your situation, finding your dream home is half the battle. After all, once you have found the perfect place to buy, you need to determine how you are going to pay for that beautiful home!

With the help of FiveStarHomeMortgage which is conveniently located in New Jersey, the process of finding the right lender is made much simpler! Our professionals in our new jersey offices specialize in helping people just like you find the right type of mortgage loan to suit their needs. In addition, our goal is always to find the right program and the right lender to help you save money on your home purchase.

Mortgage Guide

With ARM loans, the amount of interest you pay will change according to the prime rate. This means your monthly payment will increase or decrease when the prime rate changes. The fixed interest loans, on the other hand, interest rate on these loans stays the same throughout the lifetime of the loan, which generally lasts anywhere from 15 to 30 years. The interest rate you receive is determined by your credit score as well as other factors taken into consideration at the time of the loan.

Bailout loans help you avoid foreclosure if you haven’t been able to pay your mortgage for 120 days, you can talk to your agency more about these type of issues. If you are building your home, on the other hand, a construction mortgage will allow you to access portions of your loan throughout the building process so you can keep your contractors paid. Rehab mortgages, on the other hand, are loans that are used to help purchase a “fixer upper” and also provide money to help with making the necessary repairs.

Mortgage rate history FHA and VA loans help veterans, people with disabilities, and people with low incomes acquire a home with mortgage terms they can afford. You can also save money in the beginning with interest only loans. With these loans, your monthly payment is applied only toward the interest. If you send more money, it is applied toward the principle and helps increase your equity. Rates on these loans are adjustable, which means your monthly payment can increase or decrease throughout the lifetime of the loan. The same is true with low down payment loans. These loans allow you to purchase a home even if you do not have the standard 20% down payment. Lenders will require PMI, which is an additional expense added to your monthly payment, when approving one of these loans.

If you have your own business, you might want a self-employment loan. These loans are used by people that are self-employed and may have difficulty with proving a steady income. No doc loans are also good for business owners as well as others with special circumstances. These loans require little documentation, which means you do not have to prove your income or the amount of debt you are currently carrying. Rates on these loans tend to be higher than standard mortgage loans.

If you are purchasing a home that is quite expensive, you might get a jumbo loan. These loans are given to homebuyers that are purchasing homes that are over $417,000. Similarly, if you need to get your hands on some more money, you might choose to refinance or to get an equity loan. These loans are used to access equity built in the home or to refinance the home in order to take advantage of better terms.

Whether you own a business, have perfect/excellent, good, fair, or poor credit or are looking to fix up a home that is need of repair, FiveStarHomeMortgage can help you find the loan that best suits your needs. Our professionals will work closely with you in order to find the type of loan and the lender that helps you get the loan you need so you can finally purchase the home of your dreams. Contact us today to learn more about how we can help!

Copyright 2009-2010 Five Star. All Rights Reserved.


Cheapest Interest Rate Home Loans Online Mortgage Quotes, mortgage rate history.#Mortgage #rate #history


cheaper mortgages

affordable fixed rate

expert home lenders

Mortgage rate historyMortgage rate historyMortgage rate historyMortgage rate historyMortgage rate history

Mortgage rate history

We Specialize in low rate lending across the united states. Lowest Interest rates online!

To begin the process please fill out the form to the right.

Mortgage rate history

About Five Star Mortgages

Mortgage rate history Are you ready to start scouring the market and searching for your dream home? Or, perhaps you are going to have your dream home built so it will have all of the features you have always wanted. Regardless of your situation, finding your dream home is half the battle. After all, once you have found the perfect place to buy, you need to determine how you are going to pay for that beautiful home!

With the help of FiveStarHomeMortgage which is conveniently located in New Jersey, the process of finding the right lender is made much simpler! Our professionals in our new jersey offices specialize in helping people just like you find the right type of mortgage loan to suit their needs. In addition, our goal is always to find the right program and the right lender to help you save money on your home purchase.

Mortgage Guide

With ARM loans, the amount of interest you pay will change according to the prime rate. This means your monthly payment will increase or decrease when the prime rate changes. The fixed interest loans, on the other hand, interest rate on these loans stays the same throughout the lifetime of the loan, which generally lasts anywhere from 15 to 30 years. The interest rate you receive is determined by your credit score as well as other factors taken into consideration at the time of the loan.

Bailout loans help you avoid foreclosure if you haven’t been able to pay your mortgage for 120 days, you can talk to your agency more about these type of issues. If you are building your home, on the other hand, a construction mortgage will allow you to access portions of your loan throughout the building process so you can keep your contractors paid. Rehab mortgages, on the other hand, are loans that are used to help purchase a “fixer upper” and also provide money to help with making the necessary repairs.

Mortgage rate history FHA and VA loans help veterans, people with disabilities, and people with low incomes acquire a home with mortgage terms they can afford. You can also save money in the beginning with interest only loans. With these loans, your monthly payment is applied only toward the interest. If you send more money, it is applied toward the principle and helps increase your equity. Rates on these loans are adjustable, which means your monthly payment can increase or decrease throughout the lifetime of the loan. The same is true with low down payment loans. These loans allow you to purchase a home even if you do not have the standard 20% down payment. Lenders will require PMI, which is an additional expense added to your monthly payment, when approving one of these loans.

If you have your own business, you might want a self-employment loan. These loans are used by people that are self-employed and may have difficulty with proving a steady income. No doc loans are also good for business owners as well as others with special circumstances. These loans require little documentation, which means you do not have to prove your income or the amount of debt you are currently carrying. Rates on these loans tend to be higher than standard mortgage loans.

If you are purchasing a home that is quite expensive, you might get a jumbo loan. These loans are given to homebuyers that are purchasing homes that are over $417,000. Similarly, if you need to get your hands on some more money, you might choose to refinance or to get an equity loan. These loans are used to access equity built in the home or to refinance the home in order to take advantage of better terms.

Whether you own a business, have perfect/excellent, good, fair, or poor credit or are looking to fix up a home that is need of repair, FiveStarHomeMortgage can help you find the loan that best suits your needs. Our professionals will work closely with you in order to find the type of loan and the lender that helps you get the loan you need so you can finally purchase the home of your dreams. Contact us today to learn more about how we can help!

Copyright 2009-2010 Five Star. All Rights Reserved.


Rate Trend Index – Mortgage Rate Trends, mortgage rate trends.#Mortgage #rate #trends


Mortgage Rate Trend Index: Nov. 15, 2017

Mortgage rate trends

Each week, Bankrate surveys experts in the mortgage field to see where they believe mortgage interest rates are headed.

This week (Nov. 15-22), 10 percent of the panelists believe mortgage rates will rise over the next week or so; 40 percent think rates will fall; and 50 percent believe rates will remain relatively unchanged (plus or minus 2 basis points).

Calculate your monthly payment using Bankrate’s mortgage calculator.

Read the comments and rate predictions of mortgage experts and Bankrate analysts below.

10% say rates will go up

Mortgage rate trends

Dick Lepre

Senior loan officer, RPM Mortgage, San Francisco

Both the daily and weekly stochastic techs of the 30-year Treasury bond future are bearish (lower prices, higher yields) signaling slightly higher yields and rates in the coming week.

40% say rates will go down

Mortgage rate trends

Les Parker

Senior vice president of LoanLogics, Trevose, Pennsylvania

Let’s get fiscal, fiscal. Look for a relief rally in bonds and the dollar as Dodd-Frank reform and tax cuts move towards passage. Expect thankful bucks and equities to duck unless the bills become turkeys.

Mortgage rate trends

Greg McBride, CFA

If tax reform talks bog down, concerns about the low inflation numbers will resurface and pull yields a bit lower.

Mortgage rate trends

Joel Naroff

President and Chief Economist, Naroff Economics, Holland, Pennsylvania

Concern that the tax plan is getting out of control affecting stocks and bonds.

50% say rates will remain unchanged

Mortgage rate trends

Logan Mohtashami

Senior loan officer, AMC Lending Group, Irvine, California

We had a 9 basis point spread from 2.31 percent from 2.40 percent and Wednesday pricing is 2.34 percent so not much action. Key channel levels are 2.27 percent and 2.45 percent and a break of these levels will mean something, but until then we are stuck in this channel. Oil prices have held up well this year, and still no pull backs in the markets, but seeing some selling this week. Lumber prices are at 21-year highs so we see some commodity inflation but not enough to pull up core CPI and PCE.

Mortgage rate trends

Brett Sinnott

Vice president of capital markets, CMG Financial, San Ramon, California

It is still expected that the Fed will carry out its final rate move of 2017 by increasing 25 bps at their December meeting. This, combined with their balance sheet unwind, should have a greater effect on mortgage rates than the previous moves earlier in the year. Home prices continue to hinder prospective buyers as almost half of the nation’s top markets are now considered “overvalued” according to recent figures, and although seasonality may be a significant reason for low mortgage volume, at some point higher interest rates will be a dominant force in home values and mortgage volume.

Mortgage rate trends

Jim Sahnger

Mortgage planner, Schaffer Mortgage, Palm Beach Gardens, Florida

Look for rates to remain unchanged going into Thanksgiving. Trading could be light so should we get any news that surprises us, we could see some wide swings in bond prices. Happy Thanksgiving to all!


Current Mortgage Rates Today – View The Best Mortgage Rates, mortgage rate trends.#Mortgage #rate #trends


Current Mortgage Rates Today

Current Mortgage Rates – Mortgage Rates Today

Mortgage rate trends

Mortgage 101: A Mortgage Resource Guide

This guide will help first-time home buyers and seasoned veterans get the information they need to make the correct financial decision regarding their mortgage. Our goal is to provide information and resources for everything you need to know about the mortgage process. Whether you are shopping for your first home or you are already established in a existing home, this page can be your guide. Take the necessary steps to make purchasing your first home or maintaining your existing home a seamless [Read More. ]

Latest Mortgage Information

Mortgage rate trends

Top 10 Loan Modification Lenders

Many Americans have been affected by the recent economic crisis. Millions of homes have gone into foreclosure, and millions of families have lost their homes. If you are at risk for losing your home, the good [Read More. ]

Mortgage Tips Tricks

Mortgage rate trends

The Top 10 Tips to Help Homebuyers Thrive in Today s Current Home Market

Mortgage rate trends

Invest Smarter by Understanding the Top 6 Most Common Mortgage Myths

Mortgage rate trends

Top 5 Mortgage Scams to Watch Out For This Year

Mortgage rate trends

5 Important Reasons Why You Should Pay Off Your Mortgage Sooner Than Later

Tip of the Day

The Mortgage Library

Mortgage rate trends

How to Tell if Current Mortgage Interest Rates Will Continue to Rise

Up until not long ago mortgage rates used to be very low, close to the lowest they have ever been. Rates have decreased to near record lows due to the recent housing market crash, which affected both homeowners and mortgage lenders. While millions of people have lost their [Read More. ]

Mortgage rate trends

Could a 10 Year Mortgage Rate Be Your Best Mortgage Option?

One of the key aspects of finding a good mortgage loan is determining what type of mortgage term works out best for you. Long-term mortgage loans seem more attractive at first glance because the monthly payment is much smaller, but if you factor in the larger interest rate, [Read More. ]

Mortgage rate trends

How the Current Government Shutdown is Affecting FHA Mortgages

The housing market has been recovering steadily lately, but the current government shutdown may interfere with that progress. For the first time in 17 years, the government has partially shut down. Besides other important implications, this shutdown could affect people who [Read More. ]

Mortgage rate trends

Bad Credit Home Loans Are They Possible With Today s Stiffer Regulations?

There are many reasons for having a bad credit score, and you might be wondering if you are still able to buy a home, despite your shortcomings. The truth is that there are no rules set in stone when it comes to bad credit home loans. Some lenders may be more lenient than [Read More. ]

Mortgage rate trends

What is this Difference Between a Home Equity Line of Credit vs Home Equity Loan

When buying a home with a mortgage loan, both you and your lender own parts of the home. The part of the home that you own is represented by the equity which builds up each time you make a payment. Having equity in your home allows you to take out a house equity loan by [Read More. ]

Mortgage rate trends

What Are the Typical Home Equity Loan Requirements

Home equity loans are designed to help homeowners gain quick access to some much needed cash by tapping into the equity in their homes. Home equity loans provide an alternative to taking out other types of loans or opening new credit card accounts. While other forms of [Read More. ]

Mortgage rate trends

Pros and Cons of Home Equity Loans

Home equity loans allow homeowners to take out a loan using the equity accumulated in their home as collateral. Home equity loans give you quick access to money that can be used for a home remodeling project, medical bills or college tuition. A home equity loan can be more [Read More. ]

Mortgage rate trends

Is it Possible to get a Home Equity Loan With Bad Credit?

Getting a home equity loan with poor credit is more difficult, but not impossible. Before you decide to make improvements to your home or decide that you need some quick cash, you need to find out if a lender is willing to give you a home improvement loan and how your loan [Read More. ]


Fixed-Rate Mortgages: How They Work, The Truth About, mortgage rate chart.#Mortgage #rate #chart


Fixed Rate Mortgages

Mortgage rate chart

A fixed-rate mortgage is the most ordinary and uncomplicated mortgage available to homeowners today. It is also far and away the most popular choice for borrowers.

As the name suggests, the interest rate on a fixed mortgage does not change at all during the entire duration of the loan, which is typically 30 years.

Fixed Mortgages Are Easy to Understand and Surprise-Free

For that reason, fixed-rate mortgages do not have associated mortgage indexes, margins, or caps because they are not variable-rate loans. It s basically a set-it-and-forget-it loan program that s easy to understand.

Another key characteristic of the fixed-rate mortgage is that monthly principal and interest mortgage payments remain constant throughout the life of the loan, to the very last month when the loan is finally paid off.

In other words, there aren t too many surprises with a fixed-rate loan, making it easier for the homeowner to sleep at night. Of course, that certainty does come at a cost, namely, a higher mortgage rate relative to adjustable-rate options.

However, a 30-year fixed might not cost much more than a 5/1 ARM, depending on the rate environment at the time you re shopping for a loan.

For example, a 30-year fixed today might be offered at around 3.75%, while a 5/1 ARM might be available for 3%.

This 0.75% spread is the cost of securing that fixed rate. Or the discount of going with the ARM instead.

On a $200,000 loan amount, we re talking a difference of about $125 per month in mortgage payment. For some folks, that s a small price to pay for a surprise-free mortgage. For others, it means leaving money on the table and paying more than necessary.

That higher rate also means your mortgage balance is paid off slightly slower than the low-rate option, which could be important if you re trying to build equity and eventually refinance.

It s very important to determine what type of loan is right for you early on in the loan process, instead of having your loan officer influence that decision.

While the 30-year fixed is definitely the most popular choice among homeowners, it s not necessarily the right fit for all borrowers. So do your research beforehand!

Types of Fixed-Rate Mortgages

Mortgage rate chart

The most common type of fixed-rate mortgage is the 30-year fixed, which amortizes over thirty years, with the majority of early payments going toward interest, and the bulk of later payments going toward principal.

The next most popular term for a fixed mortgage is the 15-year fixed loan, which amortizes over fifteen years, bumping up monthly mortgage payments significantly, but reducing the amount of interest paid throughout the duration of the loan considerably.

Many banks and mortgage lenders also offer 10, 20, 25, 40, and 50-year fixed loans as well, though they are far less popular and widespread.

You may also be able to choose your own term, via programs like Quicken s Yourgage, and through similar programs offered by other lenders.

If you want a certain term, just let them know and they might be able to accommodate you. A shorter fixed term means a higher payment, but it also equates to a lot less interest and a home that is free and clear that much faster.

Fixed Mortgages with Interest-Only Options

Some fixed-rate mortgages also feature interest-only periods, which allow homeowners to make interest-only payments during the first five to ten years of the loan term, though the loan will recast once the interest-only period is up to account for any reduced payments made during that period.

In other words, payments after the interest-only period expires will be higher to compensate for lower payments made early on. However, the mortgage is still considered fixed. It is simply recalculated to reflect the remaining number of months and the remaining mortgage balance.

Fixed-Rate Mortgage Benefits

Fixed-rate mortgages are beneficial for a number of reasons, though the fact that your mortgage payment will never change is clearly paramount.

If interest rates rise, homeowners with adjustable-rate mortgages will suffer the consequences of higher monthly mortgage payments, while fixed-rate borrowers can rest assured that their payments will not change under any circumstances.

Fixed mortgage borrowers won’t need to worry too much about where the market is headed either, though it’s wise to monitor interest rates in case a sizable interest rate drop makes it favorable to refinance.

But generally, it’s a pretty stress-free loan choice, and one that’s favored by many government programs (FHA loans, VA loans) for its stability and clear-cut nature.

Put simply, the fixed mortgage is a good choice for the borrower that actually wants to pay off their mortgage, and plans to stay in the home (and with the mortgage) for the foreseeable future.

One Downside of a Fixed Mortgage

The only real negative aspect of a fixed-rate mortgage is the higher interest rate, although these days many fixed mortgages price fairly closely to adjustable-rate mortgages.

Typically, homeowners pay a premium to lock in a fixed mortgage rate, whereas adjustable-rate mortgages may be discounted, especially early on.

So a 30-year fixed mortgage rate may be one percentage point higher than say a 5/1 ARM, but the borrower who goes with the fixed loan is banking on payment stability in exchange for a higher upfront cost. The borrower with the ARM is essentially taking a risk that rates won t rise in the future.

Another small negative associated with a fixed-rate mortgage is the idea that many homeowners will fail to refinance when a good opportunity comes around because they re so obsessed with holding onto their low fixed rate.

Basically a homeowner with a fixed mortgage may avoid refinancing in fear of losing that fixed-rate, whereas an ARM-borrower is always keen to shop around in order to save money.

A homeowner can also lose the advantage of a fixed mortgage if they sell or refinance within a few short years. In that case, they could have just taken out an ARM that was fixed for the first five or seven years and enjoyed a stable rate at a lower price.

But all in all, fixed mortgages are a good choice for a wide range of borrowers because of the relative low risk and lack of surprise. And with fixed mortgage rates at historic lows, there couldn t be a better time to obtain one for the long term.

Check out the chart below, which illustrates the interest rate movement of the popular 30-year fixed-rate mortgage over the course of 2010:

Mortgage rate chart


Fixed Rate Mortgage – 2, 3, 5 Year Fixed Mortgages – Tesco Bank, mortgage rate


Fixed rate mortgage

Making your mortgage repayments easier to manage

Mortgage rate tracker

Our 2, 3 and 5 year fixed rate mortgages (sometimes called fixed term mortgages), give you the certainty of knowing that your repayments will stay the same for a set period of time. The rate of interest you pay is fixed for the agreed period, and so are your monthly repayments, whether interest rates go up or down.

  • We could help you make the move with our 95% loan to value (LTV) mortgages, meaning you only need a 5% deposit
  • You could pay off your mortgage early. During the initial rate period, you can overpay by up to 20% of the outstanding balance each year with no early repayment charge
  • Get a great deal more. Collect Tesco Clubcard points on your monthly repayments and any regular or lump sum overpayments. You won’t collect points on any fees or charges paid separately from your monthly payment or on any overpayment you make to pay off your mortgage in full
  • Choose between a mortgage with a product fee or one without a product fee

Features of a fixed rate mortgage

WHAT IS A FIXED RATE MORTGAGE?

Fixed rate mortgages explained

A fixed rate mortgage means that your interest rate stays the same for a fixed period, for example, 3 years. This can make it easier to manage your budget because your monthly repayments will stay the same.

Once your fixed rate period has ended, we will move you to our standard variable rate (SVR). If you’re an existing customer, before your initial offer period ends, we’ll get in touch with details about our current mortgage deals.

Our fixed rate mortgage range

Use our quick mortgage calculator to see what mortgage products we could offer you.

Not sure if a Tesco Bank Fixed Rate Mortgage is right for you? Take a look at our full range of mortgage options.

All of our mortgages are repayment, rather than interest-only. This means that you pay back all of the loan (sometimes called the capital), plus interest.

BENEFITS OF OUR FIXED MORTGAGE

Benefits of our fixed rate mortgage

Our range of fixed rate mortgages is flexible, so if your life changes your mortgage could too.

Budget more easily with fixed repayments

Our fixed rate mortgages help you budget more easily with the certainty of knowing your monthly repayments will stay the same for an agreed period, even if interest rates go up or down.

Pay off your mortgage early for more years of mortgage-free living

During the initial period (2, 3 or 5 years) you can overpay by up to 20% of the outstanding balance each year and there’s no early repayment charge.

Take your mortgage with you when you move home

Just give us a call about moving your mortgage and we’ll walk you through what you need to know. Just a reminder, you may need to pay a property valuation fee, as well as other fees and charges.

It will all be outlined in your Mortgage Illustration: a document that tells you how much your mortgage will cost, as well as some other important information about the key features of your mortgage.

Have a break with a payment holiday

If you’ve made 6 monthly payments in a row, you can apply to take a payment holiday for 1 month. You can take 2 payment holidays every 12 months, up to a total of 6 payment holidays over the lifetime of your mortgage. But remember, you’ll still be charged interest during a payment holiday, so your monthly payments may go up.

You could increase your borrowing

If you’ve made 6 monthly payments, one after the other, you can apply to borrow more. The minimum amount you can borrow is £5,000. We have a range of additional borrowing products with different rates depending on your current loan to value (LTV).

We’re upfront and keep things simple. You’ll find full details of the changes you can make to your mortgage, and our charges, in your personalised Mortgage Illustration.

Just a reminder, you may need to pay a property valuation fee, as well as other fees and charges.

Tesco Clubcard points

You will collect 1 point for every £4 you pay on your monthly mortgage payments – including overpayments. It’s easy to keep track of your points too as they’ll show up on your Tesco Clubcard account within 6 weeks of each payment you make. You must be registered with Clubcard in order to collect points.

You won’t collect points on any fees or charges paid separately from your monthly payment or on any overpayment you make to pay off your mortgage in full.

Clubcard points collection rates are subject to change.

The Tesco Clubcard Scheme is administered by Tesco Stores Limited, Tesco House, Shire Park, Kestrel Way, Welwyn Garden City, AL7 1GA, who are responsible for fulfilling points.

FIRST TIME BUYERS AND MOVING HOME

First time buyers and moving home

We know that getting your mortgage sorted is important. That’s why we have a dedicated mortgage team. They provide an excellent service and are here to help you through the home buying process, whether you’re just starting out or are looking to move to a new home.

Our UK-based Mortgage Team is available from 8am to 9pm on weekdays, and 9am to 4pm on Saturdays. Call 0345 217 2050 or Minicom 0345 055 0607. These numbers may be included as part of any inclusive call minutes provided by your phone operator.

We provide a full advice service by phone, or you can apply online.

REMORTGAGE

Secure a better remortgage rate

Everyone has their own reasons for wanting to remortgage. Your current deal could be about to end, you might be looking for a better rate or be worried that interest rates might go up. Maybe your situation has changed and you want a different type of mortgage or perhaps you want to increase your mortgage to make home improvements.

We offer competitive rates on remortgage deals, so there’s nothing stopping you from getting a quote and seeing how much you can borrow. If you’re coming to the end of your deal we can arrange for your home to be revalued and pay for your first standard valuation fee.

You could save by switching

When you remortgage with us, we’ll pay your first standard valuation fee and we’ll also cover your standard legal fees.

COMING TO THE END OF YOUR MORTGAGE?

Renew your existing mortgage

If you’re an existing customer, before your initial offer period ends, we’ll get in touch with details about our current mortgage deals. We’ll work it out based on how much you still owe on your mortgage, our current valuation of your home, and the number of years left on your existing mortgage. And because you’re already a customer, we’ve done all the checks we need to, meaning switching to a new deal should be quick and easy.

Our awards

Mortgage rate tracker

We’re proud of the awards we’ve won because they’re recognition for our online product offering – including our 2, 3 and 5 year fixed rate products – and the ability to apply online.

In 2017 we were awarded What Mortgage’s Best Direct Lender for the second year running and Moneyfacts Best Remortgage Lender 2017. We were also Moneyfacts Best First Time Buyer Mortgage Provider 2016 and Moneynet’s Best Direct Mortgage Provider for the third time in a row.


Seattle Mortgage and Home Loans – HARP, USDA, FHA, 203k and Jumbo – Dan Keller,


todays mortgage rate

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The Biggest Mistake First Time Home Buyers Make In Seattle

Episode #46: I explain the BIGGEST mistake first time home buyers make in the Seattle market and how it cost $83,981 over 10-years

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Understanding Trump s Tax Plan and Mortgage Interest Deductions

Episode #45: It s tough to believe what the media is saying related to Trumps proposed Tax Plan and what it means to housing, so I explain exactly what it means

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Everett Mortgage Broker Explains Zero Down Home Loan Options in Washington

Episode #44 Everett Mortgage Broker explains the Top 3 Zero Down Loan Programs for 2017 and an update on the market

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How To Pay Your Closing Cost When Buying A Home

Closing costs are a variety of fees associated with buying a home! In this article and video, you ll learn what are closings costs and how to pay your closing costs when buying a home in Seattle..

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The Top 4 Factors That Determine Your Mortgage Rate Quote

Consumers are misinformed when it comes to mortgage interest rate quotes. Today, I give you a behind the scenes look into the mortgage industry and what determines your mortgage rate

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I answer the top question I get on Yelp How do I refinance my mortgage? I share my 2-step mortgage planning process that is designed to save you and make you money over time

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Seattle Real Estate Radio | podcast Youtube show

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Listen Watch | This Weeks Episode

Curious about what goes into staging a home, and why it could be a life saver before you put your house on the market? David Robertson of David Robertson Design is here to shed some light on the topic.

David has been working in Seattle for 14 years in Home Staging and Interior Design. He opened his own company David Robertson Design based on the idea that if he specializes in building a company around his passion for Modern and Mid Century Modern Design/Architecture that he could create a niche in the Seattle Market that was not being meet. 10 years later, he has grown the company from of 1 Employee and 1 Sofa to 9 employees and 5000 sqft Warehouse that can stage up to 50 houses at a time. He has the most talented design team assembled in Seattle that are the magic behind his company.

Tune in to hear all your questions answered on what is important to know about design and home staging, led by our ever wonderful hosts Dan Keller and Christian Nossum.

To check out David Robertson Design, visit here http://www.davidrobertsondesign.com/

To check out Co-host Christian Nossum’s website, visit here

What Other Are Saying | About the Dan Keller Team

The Dan Keller Mortgage Team gives massive value to their clients in each transaction. They not only provide great rates and fees, but also offer unparalleled customer service! Oh, and did I mention that they can close a loan effortlessly in under 21 days?

Zach M. September 11, 2015

When it comes to buying a home, small differences between banks can amount to thousands of dollars. Dan locked us into an excellent rate and helped us secure a loan with payments well below our expectations. He secured us an amazing mortgage and made the entire process simple and effortless on our part. He and

Bert B. September 11, 2015

Dan Keller and his team are completely amazing. I have a bit of experience in mortgage lending (okay, 30 years), and would highly encourage anyone considering a real estate loan (Agents, are you listening?) to use Dan’s team for their next transaction. My daughter her family were in a short-sale escrow to purchase a

Deborah K. September 11, 2015

As a real estate attorney, I can attest to the first-class quality of Dan’s service and products. Dan has done a spectacular job for my clients, distinguishing himself by working hard, getting them in the right loans, then ensuring the transactions close smoothly. I cannot recommend Dan highly enough.

Ron M. September 11, 2015

I’m an educator and a 30+ year veteran of the mortgage lending industry. I’ve known Dan for several years now. This year, Dan was put in a position of having to make an ethical choice. He chose to be honest. His choice had an effect on me professionally, and I don’t think he realized it

Jillayne S. September 11, 2015

Can’t say enough about Dan and his team. I am a real estate broker in Northwest Washington and encourage all of the buyers we are working with to contact Dan and use him if they are financing their home. I could go on and on about how he has saved the day on different deals

Ed F. September 11, 2015

My wife and I are first time home buyers who were slightly anxious about the unknowns in the process of getting a loan. A friend referred us to Dan Keller and his group, saying they had rates comparable to big banks but were much more personable. Our first thought was that paying a bit more

Jonathan W. September 11, 2015

After an awful experience with Wells Fargo, Dan and his team swept in and saved the day. We found the perfect house and were not ready to let it go. We thought it might be a long shot to get our loan through a second process in only 3 weeks, but Dan made it happen

Alanna B. September 11, 2015

I have been recommending all of my Seattle Real Estate clients to Dan Keller for years when they need an FHA loan, conventional mortgage, or refinance. As a Seattle real estate agent myself, I am often “courted” by mortgage brokers that want me to work with them. None are as good as Dan. When he

Christian N. September 11, 2015

Dan has been an excellent business partner, I definitely recommend his mortgage services!

Bob W. September 11, 2015

Honestly after reading these reviews I was skeptical about them being fake. Possibly Dan’s friends or family trying to hype him up. People do not get this good of reviews. I was wrong; after working with Dan I can honestly say he was great. We had a near impossible situation that most advisors/brokers would have


Rate Trend Index – Mortgage Rate Trends, mortgage rate trend.#Mortgage #rate #trend


Mortgage Rate Trend Index: Nov. 15, 2017

Mortgage rate trend

Each week, Bankrate surveys experts in the mortgage field to see where they believe mortgage interest rates are headed.

This week (Nov. 15-22), 10 percent of the panelists believe mortgage rates will rise over the next week or so; 40 percent think rates will fall; and 50 percent believe rates will remain relatively unchanged (plus or minus 2 basis points).

Calculate your monthly payment using Bankrate’s mortgage calculator.

Read the comments and rate predictions of mortgage experts and Bankrate analysts below.

10% say rates will go up

Mortgage rate trend

Dick Lepre

Senior loan officer, RPM Mortgage, San Francisco

Both the daily and weekly stochastic techs of the 30-year Treasury bond future are bearish (lower prices, higher yields) signaling slightly higher yields and rates in the coming week.

40% say rates will go down

Mortgage rate trend

Les Parker

Senior vice president of LoanLogics, Trevose, Pennsylvania

Let’s get fiscal, fiscal. Look for a relief rally in bonds and the dollar as Dodd-Frank reform and tax cuts move towards passage. Expect thankful bucks and equities to duck unless the bills become turkeys.

Mortgage rate trend

Greg McBride, CFA

If tax reform talks bog down, concerns about the low inflation numbers will resurface and pull yields a bit lower.

Mortgage rate trend

Joel Naroff

President and Chief Economist, Naroff Economics, Holland, Pennsylvania

Concern that the tax plan is getting out of control affecting stocks and bonds.

50% say rates will remain unchanged

Mortgage rate trend

Logan Mohtashami

Senior loan officer, AMC Lending Group, Irvine, California

We had a 9 basis point spread from 2.31 percent from 2.40 percent and Wednesday pricing is 2.34 percent so not much action. Key channel levels are 2.27 percent and 2.45 percent and a break of these levels will mean something, but until then we are stuck in this channel. Oil prices have held up well this year, and still no pull backs in the markets, but seeing some selling this week. Lumber prices are at 21-year highs so we see some commodity inflation but not enough to pull up core CPI and PCE.

Mortgage rate trend

Brett Sinnott

Vice president of capital markets, CMG Financial, San Ramon, California

It is still expected that the Fed will carry out its final rate move of 2017 by increasing 25 bps at their December meeting. This, combined with their balance sheet unwind, should have a greater effect on mortgage rates than the previous moves earlier in the year. Home prices continue to hinder prospective buyers as almost half of the nation’s top markets are now considered “overvalued” according to recent figures, and although seasonality may be a significant reason for low mortgage volume, at some point higher interest rates will be a dominant force in home values and mortgage volume.

Mortgage rate trend

Jim Sahnger

Mortgage planner, Schaffer Mortgage, Palm Beach Gardens, Florida

Look for rates to remain unchanged going into Thanksgiving. Trading could be light so should we get any news that surprises us, we could see some wide swings in bond prices. Happy Thanksgiving to all!