 TITLE: How to Compare Mortgage Rates CONTENT: How Much Do Basis Points Matter?\n--------------------------------\nBasis points are equivalent to 1\/100th of a percent, or 0.01%. They may seem tiny, but they can have a major impact on your monthly payment and the amount you'll ultimately pay in interest on your mortgage.\nTo illustrate, let's take a look at a $300,000, 30-year ARM with an interest rate of 3%. Your monthly mortgage payment (principal and interest only) will be $1,264.80. At this interest rate, you'll pay $155,332.36 in interest over the loan term. If market conditions change and the rate increases 12.5 basis points to 3.125%, however, your monthly mortgage payment will climb to $1,285.13, and you'll pay $162,645.59 in interest over the life of the loan.\nIf you're considering an ARM, use Experian's mortgage calculator to determine how fluctuations in market conditions could affect your monthly payment. END