After deciding to acquire a mortgage loan, the next thing you should consider is brief enlightenment on how mortgage rates Chattanooga work. Here’s a brief intro below.

Now to successfully purchase a house or property, you’d most likely need to get a mortgage loan, and mortgage loans include mortgage interest rates.

Before we look into how mortgage rates Chattanooga work, we’ll first have to look at what a mortgage rate is.

Mortgage Rate- What is it?

A mortgage rate refers to the rate of interest imposed on a mortgagor’s mortgage. This mortgage rate is usually included in the total loan balance, as it carries a percentage of the total mortgage payment.

When looking at how mortgage rates Chattanooga works, it is necessary to pay the interest rate to cover the cost of lending initially.

The lower your interest rate, the higher your chances of paying your loan earlier, especially for your principal payment.

So, when there’s an increase in your principal payment, there’s a decrease in the amount you pay for your interest as you go on.

A mortgage can last over an estimated period of 10-30 years depending on the type of loan.

The best option when dealing with mortgage rates Chattanooga, would be to get a mortgage loan lender that offers a really good deal suited to your financial capability.

Factors That Can Influence Mortgage Rates

A lot of factors can determine the mortgage rate a lender can choose to offer you. Mortgage lenders come with different interest rates.

Still, there are certain things a lender will consider before giving you a loan. A few of them include;


  • Credit score: Having a good credit score and maintaining it is a great way to impress your lender. With a high credit score, you’re most likely to get a low rate.
  • The type of loan and the duration
  • The location of the property 
  • The down payment 
  • Interest rate type: Fixed or adjustable
  • Economic status 
  • Inflation, etc.

Mortgage Payments

Mortgage payment simply refers to the payment made by a mortgagor over a mortgage loan and it is usually done monthly.

 Mortgage payments are usually calculated using;

You can also make your payment calculations using a mortgage calculator when dealing with mortgage rates Chattanooga.

Although, some lenders also calculate your mortgage payments by using the following:

Principal: This refers to the initial/original amount issued by the lender over a mortgage. For example, as an individual being issued a loan for the first time of about $200,000, the principal is $200,000. 

Interest: This is usually a percentage of your total mortgage amount. It is a levy imposed for lending out the money initially. Note that low-interest rates come with low mortgage payments. Interest can either be fixed or adjustable.

Fixed interest rate: This refers to a mortgage that remains fixed and unchanged throughout its lasting period.

Adjustable interest rate: This type of interest rate is liable to change and can fluctuate during its lasting period.

Taxes: Usually, most mortgage payments come with property taxes attached to them. They can be paid monthly and held in escrow by the lender until when due for payment.

Insurance: This is also included in the mortgage payments. It is issued to protect the property against disasters like fire outbreaks, thefts, etc. It is also issued for a mortgagor who has a down payment of less than 20%.

Amortization Schedule 

Amortization depicts how much of your mortgage payments are disbursed and to what areas.

In Conclusion

It is important to note that your mortgage payment is expected at the beginning of the month or the first day of the month, for every month until the mortgage is paid for completely.


A great way of getting the best mortgage deal when it comes to mortgage rates Chattanooga is working with HomeRate Mortgage. HomeRate Mortgage offers fast closings, low rates, extra savings plus a mortgage and amortization calculator to help you get started and make the process easier.