What are interest rates and how do they affect loans?

What are interest rates and how do they affect loans?

Interest rates are the cost of borrowing money, expressed as a percentage. They affect loans by determining how much you'll pay back.

Can you explain how a higher interest rate impacts my monthly payments?

Sure! A higher interest rate means you'll pay more in interest over the life of the loan, increasing your monthly payments.

What factors influence interest rates?

Interest rates are influenced by factors like inflation, central bank policies, and the overall economic environment.

How can I find the best interest rates for my mortgage?

You can compare rates from different lenders, check online rate aggregators, and consider your credit score to find the best deals.

Are interest rates expected to rise or fall in the near future?

It's hard to predict, but economic indicators and central bank decisions will provide clues about future interest rate trends.