Mortgage Rates and Mortgage Refinance Rates

Searching for the best mortgage rates and mortgage refinance rates has become a lot easier over the past several years. The only option home buyers used to have was to go to their local bank or to a local mortgage broker to receive mortgage quotes. Now you can just check for the lowest mortgage rates online from sources such as MonitorBankRates.com.

When searching for mortgage rates and refinance rates on MonitorBankRates.com, you do not have to provide any personal information. Most sites online require you to practically fill out a mortgage application only to find at the end of the application a message saying that someone will contact you.

On MonitorBankRates.com you can see a list of mortgage rates by only selecting the type of mortgage loan, mortgage loan amount and the state you live in. MonitorBankRates.com can provide you a list of mortgage rates, mortgage refinance rates or home equity rates in your state.

Mortgage rates available include fixed rate mortgages for both conforming mortgage loans and jumbo mortgage loans, conventional adjustable mortgage rates and jumbo adjustable mortgage rates. Interest only conforming mortgage rates and jumbo interest only mortgage rates. FHA mortgage rates are also available.

Other mortgage rate search options include 30 year mortgage rates, 20 year mortgage rates, 15 year mortgage rates and 10 year mortgage rates. You can select the monthly mortgage payment amount you are interested in paying and the amount of mortgage discount points you want to pay.

Comparing Mortgage Rates and Refinance Rates

When you start your search for mortgage rates or refinance rates you need to first have an understanding of the types of mortgages available and the corresponding mortgage rates. Types of mortgage rates available include conforming mortgage rates, super conforming mortgage rates and jumbo mortgage rates.

Conforming Mortgage Rates

Conforming mortgage rates are rates on mortgages that meet the criteria set out by Federal Housing Finance Agency. There is a mortgage loan limit set for each county of the United States. There are higher mortgage loan limits for designated high-cost areas, like on the coasts and in large cities.

Mortgages that “conform” to the standards set out by the Federal Housing Finance Agency can be purchased by Freddie Mac and Fannie Mae. This process guarantees that banks are able to resell mortgage loans that have been made. As a result, conforming mortgage rates are lower than jumbo mortgage rates.

Super Conforming Mortgage Rates

Super conforming mortgages are mortgages that have higher mortgage loan amounts but still “conform” to the standards set by the Federal Housing Finance Agency. Super conforming mortgages are for the higher-cost housing areas like the coasts and in large cities.

Jumbo Mortgage Rates

Jumbo mortgage rates are rates for mortgage loans that have a dollar amount higher than conforming and super conforming loan amounts. Jumbo mortgage rates are usually 0.75 basis points higher than conforming mortgage rates because there is no guarantee banks and credit unions can sell these mortgages after they make the loans.

Mortgage Rate Types

Fixed Rate Mortgages

Fixed rate mortgages are the most common mortgage available. The mortgage rate and the monthly payment stay the same for the entire life of the mortgage loan. This makes fixed rate mortgages the most stable and predictable for mortgagees.

Adjustable Mortgage Rates

Adjustable mortgages have a fixed mortgage rate for a certain number of years and then the mortgage rate adjusts every year after the initial period.  There are usually yearly caps and life time caps on how much the mortgage interest rate and fluctuate. Your monthly mortgage payment will be lower at first but can rise when mortgage rates rise.

Interest Only Mortgage Rates

Interest only mortgages are mortgages that the borrower pays only the interest on the principal balance for a set period of time. After the initial period, the mortgagee pays both interest and principal. Interest only (IO) mortgages were popular during the housing boom but mortgagors all but eliminated IO mortgage loans during the housing bust.

FHA Mortgage Rates

FHA mortgage rates are rates on mortgages that meet Federal Housing Administration (FHA) requirements. Borrowers must meet certain requirements established by FHA to qualify for a mortgage insured by the FHA. FHA mortgage rates are usually lower than conforming mortgage rates because mortgage lenders bear less risk because FHA will pay the lender if a homeowner defaults on his or her mortgage loan. FHA mortgage rates and FHA mortgage refinance rates are available to borrowers who meet the FHA requirements.

VA Mortgage Rates

VA mortgage rates are rates on mortgages available to veterans. VA mortgage rates are also lower than conforming mortgage rates. VA mortgage rates are available to veterans looking to purchase a home or refinance an existing mortgage.

Mortgage Terms

Fixed Mortgage Terms

The most common mortgage term available is for 30 years. 30 year mortgages are available for conforming mortgages, jumbo mortgages, interest only mortgages, FHA mortgages and VA mortgages.

Other fixed mortgage terms available are 40 year, 30 year, 20 year, 15 year and 10 year mortgage terms. The mortgage length terms listed above are not available for all types of mortgages.

Adjustable mortgage terms

The most common adjustable mortgage term is a 5/1 adjustable mortgage. A 5/1 adjustable mortgage has a fixed rate for the first 5 years than adjusts every year after. The mortgage loan is usually amortized over a 30 year period. Other adjustable mortgage terms include 1 year, 3 year and 7 year.

Now that you have a better understanding of the mortgage rate types, mortgage rate terms and the length of mortgage terms, you can start your search. Just select the state you live in below to start your search for current mortgage rates in your state.