At Tarheel Mortgage, we shop around to help our clients find the lowest interest rate they can qualify for. Your best rate will depend a lot on your credit score, but other aspects of the loan influence the interest rate a bank offers. And these rates may vary from lender to lender.
The interest rate will affect your loan repayment amount and the overall cost of the loan.
Find out what rates you can qualify for today. Complete the form on the right to get started or call us today 919-463-7888!
Interest Rate FAQs
- Q: Why do interest rates change?
Interest rate movements are based on the simple concept of supply and demand. If the demand for credit (loans) increases, so do interest rates. This is because there are more buyers, so sellers can command a better price, i.e. higher rates. If the demand for credit reduces, then so do interest rates. This is because there are more sellers than buyers, so buyers can command a lower better price, i.e. lower rates. When the economy is expanding there is a higher demand for credit, so rates move higher; whereas when the economy is slowing, the demand for credit decreases and so do interest rates.
- Q: What is a rate lock?
A rate lock is a lender’s promise to “lock” a specified interest rate and a specified number of points for you for a specified period of time while your loan application is processed. During that time, interest rates may change. But if your interest rate and points are locked in, you should be protected against increases. Conversely, a locked-in rate could also keep you from taking advantage of price decreases. There are four components to a rate lock: Loan program Interest rate Points Length of the lock period The longer the length of the lock period, the higher the points or the interest rate will be. This is because the longer the lock, the greater the risk for the lender offering that lock.