· How mortgage rates work. Ever wonder how your mortgage rate is determined? What factors make it jump from percentage to percentage? We are getting down to the nitty gritty today and giving you the facts on what impacts mortgage rates.
How do mortgages work? A mortgage is essentially a loan to help you buy a property. You’ll usually need to put down a deposit for at least 5% of the property value, and a mortgage allows you to borrow the rest from a lender. You’ll then pay back what you owe monthly, generally over a period of many years.