Interest percentages

Interest percentages are often based on the term of the financing contract, the number of points being paid, and whether the funding is based on a fixed or adjustable rate. The two most popular lengths of terms on a funding note are 15 and 30 years, and recently the addition of the 40 year mortgage has been offered. Points refer to a lump sum of interest that the borrower pays up front and can definitely impact home loan mortgage rates. On a fixed funding contract, one point equals one percent of the mortgage amount. Therefore the more points being paid up front at the time of financing, the lower home loan mortgage rate is received. Fixed contracts are loans in which the interest index is constant through out the term of repayment resulting in equal payments for a set period of time. Adjustable interest indexes are when the payment and interest index vary according to the financial index the funding is based upon.