Modern apartment building background representing Utah rental properties and property management services

Mortgage Rates Explained

Everything you need to know about mortgage interest rates

Understanding Mortgage Rates

Your mortgage interest rate significantly impacts your monthly payment and total loan cost. Understanding how rates work can help you make informed decisions.

Market Factors

Rates are influenced by the economy, inflation, Federal Reserve policy, and bond market conditions.

Your Credit Score

Higher credit scores typically qualify for lower interest rates. A 20-point difference can save thousands.

Down Payment

Larger down payments often result in better rates. 20% down typically offers the best rates and avoids PMI.

Loan Type & Term

Fixed vs. adjustable, 15-year vs. 30-year, and loan type (conventional, FHA, VA) all affect your rate.

Types of Mortgage Rates

Fixed-Rate Mortgages

Your interest rate stays the same for the entire loan term. Most common are 15-year and 30-year fixed-rate mortgages. Predictable payments make budgeting easier.

Adjustable-Rate Mortgages (ARMs)

Start with a fixed rate for an initial period (e.g., 5, 7, or 10 years), then adjust periodically. Lower initial rates but can increase over time. Rate caps protect against excessive increases.

Rate Lock

Once you lock your rate, it's protected from market fluctuations for a specified period (typically 30-60 days). Lock timing is important - too early and you might miss lower rates, too late and rates might rise.

How to Get the Best Rate

• Improve your credit score - Pay bills on time, reduce debt, and check your credit report for errors
• Save for a larger down payment - 20% down typically gets the best rates
• Shop around - Compare rates from multiple lenders
• Consider points - Paying discount points can lower your rate
• Choose the right loan term - Shorter terms often have lower rates
• Lock at the right time - Work with your lender to time your rate lock

Get Your Personalized Rate Quote

Calculate Payment Get Current Rates

Expert Rate Guidance

Our loan officers can help you understand current market rates, improve your rate qualification, and lock in the best rate for your situation.

30-minute expert consultation

Market analysis & pricing

Property recommendations

Next steps & timeline