How Do Mortgage Rates Work?

Video Transcript

"Hello, how to mortgage rates work? That's the topic today. My name is Adriel Torres, and I'm the owner of ultimatecredittoday.com. A mortgage rate is just like another rate that you pay on your credit card or on your auto loan or boat loan. Basically, it's what it costs to borrow that money. And they are related to your credit score. Obviously, the higher credit score, the better credit standing you have, the lower the rate you're going to receive for the mortgage. The amortization is based on the term which is most mortgages are based on a third year. So you're paying, if you have a fixed mortgage, at seven percent you're paying that same amount every month for up to thirty years. On an adjustable, you can pay the first two years, are fixed then they adjust. But the rate can adjust as well, on an adjustable. If it's a fixed, the rate will always remain the same. Again, that's how rates work, my name is Adriel Torres with ultimatecredittoday.com. Thank you so much."