How do mortgage rates impact the cost of a home loan?

Mortgage rates have a significant impact on the cost of a home loan. The interest rate determines the amount of interest you'll pay over the life of your mortgage, which can be a significant sum. A lower interest rate means you'll pay less in interest charges over time, resulting in a lower total cost of the loan. For example, a 30year fixedrate mortgage with a 4% interest rate will result in lower monthly payments and less interest paid over the life of the loan compared to a 30year fixedrate mortgage with a 5% interest rate. Conversely, a higher interest rate means you'll pay more in interest charges, resulting in a higher total cost of the loan. Therefore, it's important to shop around for the best mortgage rates to save money on your home loan.