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Mortgage Calculator Interest Rates

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One of the best ways to use a mortgage calculator is to help you to compare the interest rates of various loans. Applying for and getting a home loan is a lot of work. It is not something that is easy to do unless you do not care how much you will be paying for your home. Since this is one of the largest investments you will ever make, you will want to insure that you get the best loan for your home as well as for your pocketbook. You can easily do this, though, when you take the time to use this type of tool.

The interest rate of a home loan is the most costly part of it. This is the percentage that you will pay to borrow the money to buy the home. Nothing is more important to compare when looking for a home loan than this number. What makes it confusing and even enticing is the fact that many lenders out there who are all offering slightly different interest rates. How do you know which one is offering the lowest rate? If you like one company and would like to work with them, but someone else is offering a lower rate, what will it cost you? These are just what you can learn from using a mortgage calculator .

This tool allows you to compare what is out there. You will simply need to punch in some numbers such as the interest rate of the potential loan, the terms of the loan and any fees that may be included as well as the amount of your down payment and out comes a lot of information that is vitally important to your decision. You will learn how much this particular home loan will cost you. The mortgage calculator will tell you how much you will pay monthly in your payments. It will also tell you how much you will pay in total cost.

Now, if there are other interest rate charges out there that you are considering, you can use the tool to see just what the difference will be. Simply go back to the blank mortgage calculator and input the necessary information for the new potential home loan. You will get all of the same numbers, this time with the new totals for the new rates. Because there is no charge for using this tool and there is no obligation for using it, it is easy to keep using it to keep seeing the various options that you have.

This tool is easy to use too. You can use it to provide you with all of the things that you need to make a good decision about the home loan you are taking in. Compare several different home loan lenders to see what they can offer you and to see just what the difference in dollars and cents is. Taking just a few minutes to carefully consider these options, by using a mortgage calculator can help you to benefit many times over in your home loan.

Mortgage Calculator Interest Rates

For the two weeks after the government takeover of Freddie Mac and Fannie Mae we saw a historic drop in mortgage interest rates. In fact it was the largest two week drop since 1995. This was after rates had been gradually falling for the previous two months on rumors of the takeover. After the drop, we saw rates increase pretty much across the board this week. Most fixed mortgage products did not see rates increase to the rates we saw two weeks ago; nonetheless the increases were pretty substantial. For instance, the 30 Year Rate was 6.35 on September 4, 2008. After the government takeover rates fell, hitting 5.78 on September 18th. This week though 30 year rates came back up to 6.09. The 15 year fixed mortgage behaved in a somewhat similar fashion. Arms on the other hand increased to levels above what we saw two and three weeks ago but are still below the rates we were seeing a month and a half ago. Below are the rates for the various mortgage products for the last few weeks.

September 25, 2008

30-yr 6.09 15-yr 5.77 5-yr ARM 6.02 1-yr ARM 5.16

September 18, 2008

30-yr 5.78 15-yr 5.35 5-yr ARM 5.67 1-yr ARM 5.03

September 11, 2008

30-yr 5.93 15-yr 5.54 5-yr ARM 5.87 1-yr ARM 5.21

September 4, 2008

30-yr 6.35 15-yr 5.90 5-yr ARM 5.97 1-yr ARM 5.15

Ok so enough with mortgage rates lets look at mortgage payments. We used our mortgage calculator to look at what the payments would be on a 200k loan for today's rates. For good measure we also looked at what payments would be based on rates two weeks ago and 2 months ago.

September 25th

30-yr $1210.69

15-yr $1662.96

5-yr ARM $1201.67

1-yr ARM $1093.28

September 11th

30-yr $1190.11

15-yr $1638.41

5-yr ARM $1182.43

1-yr ARM $1099.45

July 24th

30-yr $1281.28

15-yr $1707.22

5-yr ARM $1219.75

1-yr ARM $1134.32

So in essence what we are seeing here is that while rates and corresponding mortgage payments are up this week we are still seeing much lower rates than we saw 2 months ago. So what is my advice for people looking for a mortgage? First of all avoid the 5 year arm. With a 30 year fixed at 6.09 and a 5 year arm at 6.02 it doesn't make much sense to get a 5 year arm. Additionally, I would avoid arm's because everything is in such flux recently. And with this degree of uncertainty having a locked in fixed rate seems more attractive. If rates plummet one can always refinance. If rates move up one can just regret not getting a fixed rate mortgage.

The other recommendation I have also relate to the large degree of flux in the market. With so many large and historic measures on the table (for example the 700 billion dollar bailout) I would lock on an interest rate early. In addition, I would make sure that if rates fall in the week after locking my mortgage provider is able to relock my rate at the new lower rate. Once you start getting within 2 weeks of closing though just be aware that it will be pretty difficult to change rates.

So where are rates going to go in the next few weeks? There is so much in the air now it's really hard to tell. If the bailout goes through in theory that should work to lower rates by giving banks more confidence since their bad debt has been wiped away (thanks to taxpayers). So I am hoping that mortgage rates come down over the next week but I would not bet the bank on it (unless that bank had a negative value because it was filled with toxic subprime mortgages).

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About Author

Both Maksim Fisher & Ki Gray are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Maksim Fisher has sinced written about articles on various topics from Debts Loans, Mortgage. Maksim Fisher is a freelance writer, specialising in finance subjects such as loans, banking, , etc. He recommends use of a mortgage calcul. Maksim Fisher's top article generates over 6600 views. to your Favourites.

Ki Gray has sinced written about articles on various topics from Debts Loans, Real Estate and Food And Drink. Ki write regular blogs about the mortgage industry. His website provides graphs with updated information on . He a. Ki Gray's top article generates over 110000 views. to your Favourites.

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