Is there anything else I should know about how you’ll work out my rate?

Yes, actually, there is! Another important point about mortgage rates is that they are different depending on the loan term you choose. Here’s how it works:

• Shorter terms get lower rates so you’ll pay less interest each month and less total interest over the life of the loan (but your monthly payment will be higher).
• Longer terms get higher rates so you’ll pay more interest – but your monthly payment will be more affordable.

Why do shorter terms get lower rates, you ask? Well, it’s not rocket science but it’s not the ABCs, either. The reason is friendly lenders (like us!) figure we’re taking on less risk over a shorter period. After all, a lot can happen in 30 years! They barely even had the internet 30 years ago!