{"id":18623,"date":"2024-12-18T04:09:16","date_gmt":"2024-12-18T12:09:16","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=18623"},"modified":"2026-03-24T00:14:23","modified_gmt":"2026-03-24T07:14:23","slug":"buyer-mortgage-rates","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/buyer-mortgage-rates\/","title":{"rendered":"Mortgage Rates: An Easy Guide for Buyers"},"content":{"rendered":"

If you\u2019re in the market to buy a home, you have most likely thought about mortgage rates<\/a> and how they might affect your purchase.<\/p>\n

But to make the most of your potential home purchase, you need to understand how mortgage rates work\u2014what they are, how they are determined, and how they impact the amount of money you\u2019ll pay to purchase a home.<\/p>\n

Our guide will explain mortgage rates<\/a>, cutting through the confusion to help you understand exactly what you can expect when buying a home and how it will impact your bottom line.<\/p>\n\n\n\n\n\n

\n
\n
\n \"homelight\n <\/div>\n \n

Discover How Much Home You Can Afford With Our Home Affordability Calculator<\/h3>\n

Understand the costs associated with buying a home and find out what safe budgeting looks like.<\/p>\n \n

\n Get Started<\/a>\n <\/div>\n <\/div>\n<\/div>\n\n\n

DISCLAIMER: This article is meant for educational purposes only and is not intended to be construed as financial, tax, or legal advice. HomeLight always encourages you to reach out to an advisor regarding your own situation.<\/em><\/p>\n

<\/div>\n

What is a mortgage rate?<\/h2>\n

When you obtain a loan from a lender to purchase a home, your mortgage is the agreement between you and the lender to use that money to purchase or refinance a property.<\/p>\n

Your mortgage rate, also known as an interest rate or mortgage interest rate, is the interest rate you\u2019ll pay in addition to your home loan.<\/p>\n

For example, as a rough estimate, your lender gives you $300,000 to purchase a home.\u00a0 This amount is called the loan principal. Each month, you\u2019ll make payments to pay down this $300,000. This payment will be a combination of your mortgage rate and your monthly payment. The lower the mortgage rate, the better because that means you\u2019ll pay less each month, with more money available towards your loan principal.<\/p>\n

<\/div>\n

What are the different types of mortgage payments?<\/h2>\n

The mortgage you acquired and the estimated time it will take you to pay off your loan will impact your monthly interest rate and the type of payments you\u2019ll be expected to make.<\/p>\n

Generally speaking, you’ll encounter two primary types of mortgage rates.<\/p>\n

Fixed-rate mortgage:<\/strong> If you have a fixed-rate mortgage, this means that your mortgage payment will be the same every month (or \u201cfixed\u201d). This will be true for the life of the mortgage, which is either a 15-year or 30-year loan. Additionally, your mortgage will be locked into a single interest rate for the life of the loan. It\u2019s important to note that with a fixed-rate mortgage, though your rate is fixed, your property taxes and homeowner\u2019s insurance can still increase, so plan accordingly.<\/p>\n

This is one of several reasons (aside from affordability) that high-interest environments scare off potential homeowners\u2014no one wants to lock themselves into a 7% rate for the life of a 30-year loan when there\u2019s a chance 6% could be waiting for them. Ideally, you want to lock in at the lowest rate possible. While refinancing later<\/a> can be an option, it can be difficult if the value of your home drops.<\/p>\n

Adjustable-rate mortgage (ARM):<\/strong> An adjustable-rate mortgage<\/a> starts at a lower introductory rate for a set period of time. When that period ends, your rate will adjust to align with the market. Typically, the initial interest rate for an ARM is lower than a fixed-rate mortgage,<\/p>\n

ARMs are best for buyers who plan to own their homes for only a few years or who expect their income to increase while they own the property.<\/p>\n","protected":false},"excerpt":{"rendered":"

Millions of potential buyers are unaware of how mortgage rates work, but those who understand can save thousands. Our guide will help demystify the process. <\/p>\n","protected":false},"author":358,"featured_media":51778,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"cybocfi_hide_featured_image":"","footnotes":""},"categories":[192,629,632],"tags":[],"class_list":["post-18623","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-for-buyers","category-home-financing","category-mortgage-loans"],"acf":[],"yoast_head":"\nMortgage Rates: An Easy Guide for Buyers<\/title>\n<meta name=\"description\" content=\"Millions of potential buyers are unaware of how mortgage rates work, but those who understand can save thousands.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.homelight.com\/blog\/buyer-mortgage-rates\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Mortgage Rates: An Easy Guide for Buyers\" \/>\n<meta property=\"og:description\" content=\"Millions of potential buyers are unaware of how mortgage rates work, but those who understand can save thousands.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.homelight.com\/blog\/buyer-mortgage-rates\/\" \/>\n<meta property=\"og:site_name\" content=\"HomeLight Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/gohomelight\/\" \/>\n<meta property=\"article:published_time\" content=\"2024-12-18T12:09:16+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-03-24T07:14:23+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2024\/12\/Untitled-design-2024-12-19T061947.109.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1000\" \/>\n\t<meta property=\"og:image:height\" content=\"563\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Joseph Gordon\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@gohomelight\" \/>\n<meta name=\"twitter:site\" content=\"@gohomelight\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Joseph Gordon\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"8 minutes\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Mortgage Rates: An Easy Guide for Buyers","description":"Millions of potential buyers are unaware of how mortgage rates work, but those who understand can save thousands.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.homelight.com\/blog\/buyer-mortgage-rates\/","og_locale":"en_US","og_type":"article","og_title":"Mortgage Rates: An Easy Guide for Buyers","og_description":"Millions of potential buyers are unaware of how mortgage rates work, but those who understand can save thousands.","og_url":"https:\/\/www.homelight.com\/blog\/buyer-mortgage-rates\/","og_site_name":"HomeLight Blog","article_publisher":"https:\/\/www.facebook.com\/gohomelight\/","article_published_time":"2024-12-18T12:09:16+00:00","article_modified_time":"2026-03-24T07:14:23+00:00","og_image":[{"width":1000,"height":563,"url":"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2024\/12\/Untitled-design-2024-12-19T061947.109.png","type":"image\/png"}],"author":"Joseph Gordon","twitter_card":"summary_large_image","twitter_creator":"@gohomelight","twitter_site":"@gohomelight","twitter_misc":{"Written by":"Joseph Gordon","Est. reading time":"8 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":["Article","BlogPosting"],"@id":"https:\/\/www.homelight.com\/blog\/buyer-mortgage-rates\/#article","isPartOf":{"@id":"https:\/\/www.homelight.com\/blog\/buyer-mortgage-rates\/"},"author":{"name":"Joseph Gordon","@id":"https:\/\/www.homelight.com\/blog\/#\/schema\/person\/27ea4bb2ff58e39a5ad0ede08021246f"},"headline":"Mortgage Rates: An Easy Guide for Buyers","datePublished":"2024-12-18T12:09:16+00:00","dateModified":"2026-03-24T07:14:23+00:00","mainEntityOfPage":{"@id":"https:\/\/www.homelight.com\/blog\/buyer-mortgage-rates\/"},"wordCount":576,"publisher":{"@id":"https:\/\/www.homelight.com\/blog\/#organization"},"image":{"@id":"https:\/\/www.homelight.com\/blog\/buyer-mortgage-rates\/#primaryimage"},"thumbnailUrl":"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2024\/12\/Untitled-design-2024-12-19T061947.109.png","articleSection":["Buyers","Financing","Mortgages & Loans"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.homelight.com\/blog\/buyer-mortgage-rates\/","url":"https:\/\/www.homelight.com\/blog\/buyer-mortgage-rates\/","name":"Mortgage Rates: An Easy Guide for Buyers","isPartOf":{"@id":"https:\/\/www.homelight.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.homelight.com\/blog\/buyer-mortgage-rates\/#primaryimage"},"image":{"@id":"https:\/\/www.homelight.com\/blog\/buyer-mortgage-rates\/#primaryimage"},"thumbnailUrl":"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2024\/12\/Untitled-design-2024-12-19T061947.109.png","datePublished":"2024-12-18T12:09:16+00:00","dateModified":"2026-03-24T07:14:23+00:00","description":"Millions of potential buyers are unaware of how mortgage rates work, but those who understand can save thousands.","breadcrumb":{"@id":"https:\/\/www.homelight.com\/blog\/buyer-mortgage-rates\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.homelight.com\/blog\/buyer-mortgage-rates\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.homelight.com\/blog\/buyer-mortgage-rates\/#primaryimage","url":"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2024\/12\/Untitled-design-2024-12-19T061947.109.png","contentUrl":"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2024\/12\/Untitled-design-2024-12-19T061947.109.png","width":1000,"height":563,"caption":"Source: (Taylor Simpson \/ Unsplash)"},{"@type":"BreadcrumbList","@id":"https:\/\/www.homelight.com\/blog\/buyer-mortgage-rates\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.homelight.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Mortgage Rates: An Easy Guide for Buyers"}]},{"@type":"WebSite","@id":"https:\/\/www.homelight.com\/blog\/#website","url":"https:\/\/www.homelight.com\/blog\/","name":"HomeLight Blog","description":"Real Estate Advice from America's Top Agents","publisher":{"@id":"https:\/\/www.homelight.com\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.homelight.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.homelight.com\/blog\/#organization","name":"HomeLight","url":"https:\/\/www.homelight.com\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.homelight.com\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2017\/11\/logo-hr-color.png","contentUrl":"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2017\/11\/logo-hr-color.png","width":1348,"height":262,"caption":"HomeLight"},"image":{"@id":"https:\/\/www.homelight.com\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/gohomelight\/","https:\/\/x.com\/gohomelight","https:\/\/www.linkedin.com\/company\/homelight\/","https:\/\/www.youtube.com\/channel\/UCimugR9XF17-OZ7B9fNnxWw","https:\/\/en.wikipedia.org\/wiki\/HomeLight"],"description":"Everything you need to know to sell your house faster and for more money. Articles, guides, and advice from top agents all over the U.S.","email":"support@homelight.com","telephone":"(888) 688-0350","legalName":"HomeLight","foundingDate":"2012-01-01","numberOfEmployees":{"@type":"QuantitativeValue","minValue":"201","maxValue":"500"}},{"@type":"Person","@id":"https:\/\/www.homelight.com\/blog\/#\/schema\/person\/27ea4bb2ff58e39a5ad0ede08021246f","name":"Joseph Gordon","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.homelight.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/1d722ddf6e1b1269c2bcc8de69310e71aab9d798623980292e25a725b6bae0df?s=96&d=blank&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/1d722ddf6e1b1269c2bcc8de69310e71aab9d798623980292e25a725b6bae0df?s=96&d=blank&r=g","caption":"Joseph Gordon"},"description":"Joseph Gordon is an Editor with HomeLight. He has several years of experience reporting on the commercial real estate and insurance industries.","sameAs":["https:\/\/www.linkedin.com\/in\/josephpgordon\/"],"url":"https:\/\/www.homelight.com\/blog\/author\/josephgordon\/"}]}},"_links":{"self":[{"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/posts\/18623","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/users\/358"}],"replies":[{"embeddable":true,"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/comments?post=18623"}],"version-history":[{"count":0,"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/posts\/18623\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/media\/51778"}],"wp:attachment":[{"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/media?parent=18623"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/categories?post=18623"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.homelight.com\/blog\/wp-json\/wp\/v2\/tags?post=18623"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}