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Home > Forum > Real estate News > How to calculate mortgage interest rates?

How to calculate mortgage interest rates?

Q: Any one describe how to calculate mortgage interest rates?

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Replies (5)
1
There are 2 types- fixed mortgage and flexible mortgage rates. As the name says, in fixed mortgage the rate remains same throughout the period of loan. And in flexible mortgage rate, the interest rate may vary, adjust or float in coarse of time in accordance with a set of parameters.
Saran


2
Hi You can go to your nearest bank and discuss the same with the concern person or the department who deals with mortgage interest rates. They will guide you in the proper way.
Aditi


3
As per my knowledge, an interest rate is the price of money, and a mortgage interest rate is the price of money loaned against the security of a specific property. The interest rate is used to calculate the interest payment the borrower owes the lender.
Anil Mehta


4
What are Mortgage rates?
Lekshmi


5
When banks and other lending institutions set the interest rate for their mortgage products, several factors play in to the interest rate calculation. Banks use the fed funds rate, the prime rate, the discount rate, the risk associated with the individual borrower and the bank’s necessary profit margin to determine the mortgage interest rates it charges.
Sashidharan


6

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