Mortgage Rate FAQs — How Rates Work and What Affects Yours

Your rate depends on: your credit score (higher scores = lower rates), loan-to-value ratio, loan type (conventional, FHA, VA, jumbo), loan term (15 vs 30 years), current market rates tied to the 10-year Treasury yield, and lender profit margins.

Fixed rates stay the same for the entire loan term. Adjustable rates (ARMs) are fixed for an initial period (e.g., 5, 7, or 10 years) then reset periodically based on a benchmark index like SOFR. ARMs start lower but carry rate-change risk.

On a 30-year $300,000 mortgage, a 1% higher rate increases your monthly payment by approximately $170–$180 and adds roughly $60,000–$65,000 in total interest over the life of the loan.

A rate lock guarantees your interest rate for a set period (typically 30–60 days) while your loan closes. If rates rise during that period, you keep the locked rate. Most lenders charge for extended locks beyond 60 days.

Improve your credit score (aim for 760+), make a larger down payment (20%+ avoids PMI and often gets better rates), choose a shorter loan term (15-year rates are lower than 30-year), buy discount points, and compare multiple lenders.

Indirectly. The Fed sets the federal funds rate, which influences short-term borrowing costs. Mortgage rates track the 10-year Treasury yield more closely, which responds to inflation expectations, economic growth, and investor demand.

To calculate a blended mortgage rate, you multiply your first mortgage balance by its interest rate, multiply your second mortgage (or HELOC) by its rate, add them together, and divide by the total balance of both loans. You can also just use our blended rate calculator mortgage tool. If you need a blended mortgage rate calculator, this tool handles it perfectly. A mortgage blended rate calculator works the exact same way.

If loans have different terms, the blended rate calculator with different terms uses the current outstanding balance and the current interest rate. For long-term planning, a blended rate mortgage calculator provides a snapshot of your current weighted cost, but doesn't account for loans that will be paid off sooner.

You might ask how to calculate blended mortgage rate if you have a first and second mortgage. The math requires weighting the balances.

To understand how to calculate blended rate mortgage, always remember to weight by balance, not just average the rates.

You can calculate blended mortgage rate using our main calculator above.

A blended calculator mortgage rate is the output given when combining a primary mortgage and a HELOC or home equity loan.