A mortgage rate is the rate of interest rate you pay on money you either borrow to buy a home, or a rate you pay on a second mortgage, or home equity loan when you borrow money against your home. You can get either a fixed mortgage rate or a variable mortgage rate. Fixed mortgage rates remain constant throughout the entire tem of the loan, whereas a variable mortgage rate may change multiple times throughout the life of the loan.
Both fixed mortgage rates and variable mortgage rates are determined by economic conditions, and are normally tied to some index, such as a government security.
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