← Back to glossary
Mortgage glossary
Interest Rate
The percentage used to calculate interest charged on the loan balance. It is not the same as APR. A lower interest rate does not always mean the lowest total cost because points, fees, loan term, and other features also matter.
In plain language
This term may appear in conversations, forms, or documents during the mortgage process. If something important changes in your situation, ask how it may affect your case before making a decision.
This explanation is general and educational. It is not personalized advice, a loan offer, or a promise of approval.