Over the last three decades, the 30-year fixed mortgage carried an average rate of 9.3 percent, nearly 3 percentage points higher than today's rate.

We want to refinance, as our mortgages now carry rates of 11 3/8 percent.

Owning a home is part of the American dream, but exotic mortgages also may carry risks.

These mortgages carry higher interest rates than first mortgages because lenders view them as riskier.

In addition, a mortgage must carry a life-of-the-loan cap that limits the total amount the rate can rise.

Reverse mortgages also usually carry an interest rate that reflects current fixed-mortgage rates for the same term.

Each point, he said, is equal to 1 percent of the mortgage amount, and different mortgages carry different numbers of points.

A 30-year, $150,000 mortgage at 7.25 percent, for example, would carry a monthly payment of $1,023.

But 30-year mortgages now carry an average rate of 10.25 percent, including "points" or one-time charges, down from 11.25 percent in March.

Last week, the average 30-year fixed-rate mortgage carried a 6.36 percent interest rate, up from 5.77 percent at the end of July.