Mortgage Rates – Why Mortgage Rates Fluctuate
Mortgage rates – Why Mortgage Rates Fluctuate
Mortgage rates are the rats at which the banks lend money to their customers to buy houses and property. They determine their mortgage rates based on the rate at which they are able to lend money – mainly from the reserve bank. This rate is often referred to as the repo rate.
Although with the latest credit crunch, you may think that mortgage rates which fluctuate are a bad thing, but mortgage rates fluctuations can be used to your advantage.
By choosing the right kind of mortgage loan, you can actually save thousands due to mortgage rates changing. For example, when the mortgage rates are low,