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Glossary of Notary Public, Mortgage, Signing Agent, and Loan Signing Terms.

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Common Terms 1   Common Terms 2

Rate

Phonetics: rate    \'rāt\

Definition 1:
The interest rate charged on a loan that is a monthly percentage relationship between the payments and the total amount borrowed, including fees.

Definition 2:
Information about the rate is typically on the Note and sometimes on other documents. The Truth in Lending disclosure discusses the APR which is slightly different form the rate as it is compounded and doesn't include the fees in the formula.

Definition 3:
The interest rate on a loan is typically based on the Prime Rate plus a few points. Any money lending in the United States bases its rate on what the goverment pays in interest to borrow money.

Definition 4:
Borrowers with a stellar credit history can get a much lower rate than those with high credit card debt, bankruptcy, no credit, or other credit problems. Additionally, borrowers who compare loans and shop around can often get a significantly lower rate than those who take the first loan that is offered to them.