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 real estate market analysis, tracking 'mortgage rates' helps predict market trends and affordability. An analyst might explain, 'Rising mortgage rates may slow down home buying activity, as they increase the monthly payments for new mortgages.'

Practice Scenarios

Banking

Scenario:

As a bank, we aim to provide the most attractive home loans to our customers, balancing their needs with our profitability, safety, and soundness.

Response:

I hope your bank offers a competitive mortgage rate. It would be easier to manage my finances that way.

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.