What actually determines your rate
Your mortgage rate isn't just set by the broader market, it's also shaped by your credit score, down payment size, loan term, and debt-to-income ratio. Two buyers shopping at the same time can be offered very different rates depending on their individual financial picture.
Fixed-rate versus adjustable-rate loans
A fixed-rate mortgage keeps the same interest rate for the life of the loan, which makes budgeting predictable. An adjustable-rate mortgage typically starts lower but can change over time based on market conditions, which may work well for buyers who plan to move or refinance within a few years.
Why shopping around matters
Rates and fees can vary meaningfully between lenders, so it's worth getting quotes from at least a few before committing. Even a small difference in your interest rate can add up to thousands of dollars over the life of the loan.
How rate locks work
Once you find a rate you're comfortable with, most lenders let you lock it in for a set period while your loan is processed. This protects you from rate increases while your purchase moves toward closing, though it's worth understanding the lock period and any related fees before you commit.
Talk to a lender early
Getting a sense of your likely rate before you start house hunting helps you set a realistic budget and avoid falling in love with a home outside your comfort zone. Debbie works with a network of trusted local lenders and is happy to make an introduction whenever you're ready.
