Mortgage Rate

The rate of interest charged on a mortgage. Mortgage rates are determined by the lender in most cases, and can be either fixed (stay the same for the term of the mortgage) or variable (fluctuate with a benchmark interest rate). Mortgage rates rise and fall with interest rates and can drastically affect the homebuyers' market.

The borrower's credit score can often play a role in the rate charged on a mortgage and the size of mortgage loan they are able to obtain. The rate charged ultimately determines the cost of the mortgage and the amount of the monthly payment. Therefore, borrowers should always seek the lowest rate possible.


Investment dictionary. . 2012.

Look at other dictionaries:

  • mortgage rate — noun The level of interest charged for a loan on a property • • • Main Entry: ↑mortgage …   Useful english dictionary

  • Mortgage rate — The interest rate on a mortgage loan. The New York Times Financial Glossary * * * mortgage rate UK US noun [C] FINANCE ► the rate of interest that someone pays to borrow money using a mortgage: »Britain s biggest home loan lender yesterday raised …   Financial and business terms

  • mortgage rate — The interest rate on a mortgage loan. Bloomberg Financial Dictionary * * * mortgage rate UK US noun [C] FINANCE ► the rate of interest that someone pays to borrow money using a mortgage: »Britain s biggest home loan lender yesterday raised its… …   Financial and business terms

  • mortgage rate — noun the rate of interest charged by a mortgage lender …   English new terms dictionary

  • mortgage rate — Fin the interest rate charged on a mortgage by a lender …   The ultimate business dictionary

  • mortgage rate buydown — A subsidy on the interest rate a homebuyer pays on a loan; often used (usually by developers) as an incentive to encourage homebuyers to purchase a particular home or loan. For example, if the homebuyer s interest rate is 6%, a developer might… …   Law dictionary

  • Mortgage Rate Lock Float Down — A mortgage rate lock with the option to reduce the locked interest rate if market interest rates fall during the lock period. A rate lock with a float down option can provide the borrower with security against an increase during the rate lock… …   Investment dictionary

  • Mortgage Rate Lock — An agreement between a borrower and a lender that allows the borrower to lock in the interest rate on a mortgage over a specified time period at the prevailing market interest rate. The lender may charge a lock fee, which the borrower must pay if …   Investment dictionary

  • Mortgage Rate Lock Deposit — A fee that a lender charges a borrower that allows the borrower to lock in an interest rate for a certain time period with the expectation that the borrower s mortgage will fund within that time period. The longer the lock period, the larger the… …   Investment dictionary

  • Mortgage calculator — Mortgage calculators are used to help a current or potential real estate owner determine how much they can afford to borrow on a piece of real estate. Mortgage calculators can also be used to compare the costs, interest rates, payment schedules,… …   Wikipedia

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