Current Rates

Mortgages that are fixed rated are calculated from a rate that has been established by the secondary market (where bonds and securities that are mortgage-backed get traded and sold). This rate varies based on plenty of factors, though market strength is usually a drive force that affects where the rate is set. When the economy is down, the rates will be around 4.5 to 5 percent. As the economy improves, the rates increase.

15 year mortgages usually have lower interest rates than the 30 year fixed rate types. This is due to the fact your loan payments will be larger. Lenders are will to offer lower interest rates for the 15 year mortgages because we are able to get paid back more quickly.

For adjustable rate mortgages, the interest decreases and increases periodically. There are different indexes that will determine what the rate will be, such as Bank Bill Swap rate, Constant Maturity Treasury, and LIBOR. In some cases, lenders can calculate indexes for setting mortgage rates of their own. The mortgage terms will determine the frequency that the adjustments are made.

In some cases, the adjustments will change ever quarter, while others will remain consistent for up to five years. You will never have to deal with a change of more than a two percent increase in a single term though. Keep in mind though, that there can be large increases over time.

You can use the mortgage calculator on the right to get an idea about what your payments might be, but if you want to truly know you should give us a call at (559) 638-3338. We can help you get the right mortgage for your situation.