Loan basics
Interest rate
Also known as: note rate, mortgage rate
The annual cost of borrowing expressed as a percentage of the loan balance.
The interest rate is the percentage a lender charges on your outstanding principal. Mortgage calculators usually use a nominal annual rate and convert it to a monthly rate for the payment formula. Your actual rate depends on credit, loan type, market conditions, and other factors-and may differ from the APR, which includes certain fees.
See also
Definitions are for general education. Loan products, insurance, and taxes vary by lender, location, and your situation. FinanceFlow calculators produce estimates only and are not a lender quote or professional advice.