## Will My Mortgage Rate Increase?
When you take out a mortgage, you’re agreeing to pay back a loan amount plus interest over a set period of time. The interest rate on your mortgage is typically fixed for the life of the loan, but it can change if you refinance your mortgage or if your lender adjusts the rate.
There are a few factors that can affect whether your mortgage rate will increase, including:
* **The type of mortgage you have:** Adjustable-rate mortgages (ARMs) have interest rates that can change periodically, while fixed-rate mortgages have interest rates that stay the same for the life of the loan.
* **The terms of your mortgage:** The length of your loan term, the amount of your down payment, and your credit score can all affect your mortgage rate.
* **The economic climate:** Interest rates are typically affected by the overall economy. When the economy is strong, interest rates tend to rise. When the economy is weak, interest rates tend to fall.
### How to Know if Your Mortgage Rate Will Increase
There are a few ways to tell if your mortgage rate is likely to increase. One way is to look at the Federal Reserve’s interest rate announcements. When the Fed raises interest rates, mortgage rates typically follow suit.
Another way to tell if your mortgage rate is likely to increase is to look at the yield on the 10-year Treasury note. The yield on the 10-year Treasury note is a benchmark for long-term interest rates. When the yield on the 10-year Treasury note rises, mortgage rates typically follow suit.
### What to Do if Your Mortgage Rate Increases
If your mortgage rate increases, there are a few things you can do to reduce the impact on your monthly payments. One option is to refinance your mortgage into a loan with a lower interest rate. Another option is to make extra payments on your mortgage each month. This will help you pay down your principal balance faster and reduce the amount of interest you pay over the life of the loan.
### Conclusion
Whether or not your mortgage rate will increase depends on a number of factors. By understanding the factors that can affect your mortgage rate, you can be better prepared to manage your finances if your rate does increase.
## FAQs
### What is the difference between a fixed-rate mortgage and an adjustable-rate mortgage?
A fixed-rate mortgage has an interest rate that stays the same for the life of the loan. An adjustable-rate mortgage (ARM) has an interest rate that can change periodically.
### What are the different types of ARMs?
There are many different types of ARMs available, but the most common type is the hybrid ARM. A hybrid ARM has a fixed interest rate for an initial period of time, usually 5 or 7 years. After the initial period expires, the interest rate can adjust every year thereafter.
### What factors affect the interest rate on my mortgage?
The interest rate on your mortgage is affected by a number of factors, including:
* The type of mortgage you have
* The terms of your mortgage
* The economic climate
### What can I do if my mortgage rate increases?
If your mortgage rate increases, there are a few things you can do to reduce the impact on your monthly payments:
* Refinance your mortgage into a loan with a lower interest rate
* Make extra payments on your mortgage each month
## Resources
* [Bankrate: Will Mortgage Rates Go Up in 2023?](https://www.bankrate.com/mortgages/mortgage-rates-forecast/)
* [NerdWallet: Will My Mortgage Rate Increase?](https://www.nerdwallet.com/article/mortgages/mortgage-rate-increase)
* [Investopedia: Mortgage Rates: What to Do When They Increase](https://www.investopedia.com/mortgage/mortgage-rates-increase/)