- An amount of a charge, either expressed as a percentage of, or a fee relative to some basis.
- In relation to mortgage, it is the percentage paid by a borrower for the use of money which is generally expressed as an annual percentage.
mortgage rate, interest rate
Related Terms and Acronyms
- Amortization Table — Definition,
- A mathematical formula used to calculate monthly mortgage payments based on the borrowed loan amount, the interest rate, and the loan term.
- Bank Spread — Definition,
- The difference between the interest rate a bank charges a borrower and the interest rate a bank pays a depositor.
- Capitalization Rate — Definition,
- An estimated percentage rate of return that a property will produce on the owner's investment.
- Interest (IN, int) — Acronym & Abbreviation,
➥ Bank account transaction code.
- Money paid for the use of borrowed funds, usually expressed as an annual percentage.
- Interest Rate (IR) — Acronym, Very Important,
- The rate a lender charges an individual to borrow money.
- Monthly Periodic Rate — Definition,
- The interest rate factor used to calculate the interest charges on a monthly basis. The factor equals the yearly rate divided by 12.
- Mortgage Rate — Definition, Very Important,
➥ You can compare mortgage rates using this website by clicking 'Rates' above.
- The interest rate on a mortgage loan.
- Note Rate — Definition,
- The percentage paid by a borrower for the use of money, usually expressed as an annual percentage on a promissory note.
- Point — Definition,
- A point equals 1 percent of a mortgage loan. Some lenders charge "origination points" to cover expenses of making a loan. Some borrowers pay "discount points" to reduce the loan's interest rate.
- Rate Lock-in — Definition,
- A written agreement in which the lender guarantees the borrower a specified interest rate, provided the loan closes within a set period of time.
- Variable Rate Mortgage (VRM) — Acronym, Very Important,
➥ A type of mortgage loan offered by brokers and lenders.
- Home loan in which the interest rate is changed periodically based on a standard financial index. Also called an "Adjustable-rate Mortgage."