Why Rates Matter:
Mortgage rates determine the interest you’ll pay on a home loan. For example, on a $300,000 mortgage, a 6% interest rate results in a monthly principal and interest payment of about $1,799. At 7%, the payment jumps to $1,996—nearly $200 more per month. Over 30 years, that difference adds up to tens of thousands of dollars.
Fixed vs. Adjustable Rates:
Fixed-rate mortgages maintain the same interest rate throughout the loan term. They’re predictable and ideal for long-term planning.
Adjustable-rate mortgages (ARMs) start with lower rates but adjust after a fixed period. They can save money initially but carry more risk if rates rise.

