mortgage-rate

Vocabulary Word

Definition

A 'mortgage rate' is the interest you pay on top of the principal (the amount you borrowed) for a home loan. It is usually a percentage of the loan amount.

Examples in Different Contexts

In home loans, the 'mortgage rate' is the interest rate charged on a mortgage, determining the cost of borrowing for the homeowner. A loan officer might say, 'Securing a low mortgage rate can significantly reduce the total interest you'll pay over the life of your loan.'

Practice Scenarios

Finance

Scenario:

It's important to consider not just the house price but also the long-term costs associated with financing the purchase.

Response:

Absolutely, I am also evaluating the mortgage rates from different lenders.

Real Estate

Scenario:

This property seems perfect for you. Just remember, the final cost will also depend on the home loan terms you secure.

Response:

You're right, getting the best mortgage rate is crucial. It could make a significant difference to the overall cost.