There are many factors that affect the amount of your home mortgage interest rate including the state that you live, the amount of your down payment, your credit history and the term of the loan. A search for interest rates on fixed mortgage loans today shows the market sitting about a bout 4.8% average but that changes considerably with your own information on the loan, and event the base rate may change in a few days or weeks. Your credit rating however, is probably the major factor that affects what sort of fixed rate you might receive.

Of course, fixed rate mortgage loans aren’t the only type available. The adjustable rate mortgage is a common choice among home buyers, created to take advantage of a lower interest rate at a later date. This usually changes quarterly or in some cases yearly. A much quicker changing variable rate mortgage is the tracker mortgage which not only takes its interest rate from that of the Bank  of England, but also changes your own interest rate within fourteen days of the change effected by the bank.

There are also less common types of mortgages that don’t necessarily have to be one or the other as far as interest rates go, such as the balloon mortgage, which starts your family off with low monthly payments and then gradually increases them over time so that as your income grows, from promotion or pay raises, you pay more on your home and make up for those low interest rates that you got at first. However, if you don’t have a sound financial strategy in place you may find yourself refinancing so that you are able to make your payment.

Whether you go with a fixed rate of a variable rate mortgage is completely up to you and depends upon your own needs and your personal unique situation. The best person to help you make that choice is your real estate broker or agent, who can explain the pros and cons of each type of mortgage so that you can decide which will work best.