All mortgage rates follow one financial index or another to set their pricing. Fixed rate mortgages mirror the US 10-Year Treasury Bond or T-Bill. You can see graphs of this index's activity on financial websites by searching the symbol $tnx. Increases in the interest yield will mean higher fixed mortgage rates and decreases indicate lower fixed rates.

Variable rate loans or ARM loans can be tied to a number of indices, but the most prevalent are The US 1-Year Treasury Bond and the LIBOR or London Inter Bank Daily Rate. If your variable rate loan is tied to one of these loans and you're past the introductory period you can track upcoming changes by looking up these indices and comparing them to where they were when you originally took your mortgage loan.

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Should Borrowers Pay Points?

by Matt Killikelly

Many borrowers ask the question: Is it in our best interests to pay upfront points when buying or refinancing a home? Short answer: it depends. There is no hard and fast rule.

It’s a shame that many misguided “rule of thumb” answers are still circulating at the family barbeque or being touted within the trusted walls of the accountant’s or attorney’s office. The real answer depends mostly on the borrower’s plans for remaining in the home and their budget. There is a simple test that a borrower can conduct themselves to see what’s best for them. Read on.

Tags: mortgage upfront points buying rate