June 12, 2013

The Callaway Bank has many online tools to research today’s mortgage rates that apply to the Fulton, MO area. Please visit out online mortgage rate tools.  The mortgage rate table and the online mortgage rate calculators should help you understand how mortgage rates today in Fulton, MO will translate into monthly payments for your home.

Understanding how the mortgage rates today will change over time is a key to making the right decision on your new home or refinancing. The reason banks offer similar mortgage rates is that they are usually driven by the secondary market. This secondary market is heavily influenced by the condition of two large mortgage investors called Fannie Mae and Freddie Mac. These two organizations were created by the U.S. government decades ago. These organizations bundle mortgages together into securities that are sold on the stock market to mutual funds and other kinds of investors. Investors buy a part of the security knowing the loans are a fairly secure source of revenue for the fund.

So, since the bundled mortgages are traded in the stock market (bond market specifically), they are put under the pressure of competing with other stock market investments. When the stock market is showing big gains and moving up, stock holders look to get more out of their mortgage bundle investments. This causes the mortgage interest rates to rise with the stock market’s health.

One of the best ways to understand how today’s mortgage rates may change over the short term is to contact a mortgage lender early in the process. Banks and other lenders make it their business to understand how marketplace influences may affect interest rates. Their advice is usually free and can play a big part in helping you decide they best time to buy a home or refinance.

We help people with buying homes every day.  We’d like to help you with your mortgage calculations in Fulton, MO and surrounding areas. Please contact us if we can be of any service. As the oldest independent community bank in Missouri, The Callaway Bank combines old-fashioned values like fairness, integrity, honesty, and respect with modern banking products and services. Our customers have been our greatest assets since 1857.