Mortgage interest rates Meaning and Definition
Mortgage Interest Rates
Pronunciation
/ˈmɔr.tɪdʒ ɪn.tɪrst.rɪts/
Part of Speech
Noun
Definition
The percentage of a loan’s principal that is charged as interest for a specific period of time, used to determine the total cost of borrowing for a mortgage.
Examples
- The mortgage interest rates for the fixed-rate loan were 4.5%.
- The variable-rate mortgage had higher interest rates than the fixed-rate mortgage.
Synonyms
- Interest Rate
- Borrowing Rate
Antonyms
- Low Interest Rate
- Zero Interest Rate
Etymology
The term “mortgage interest rate” originated from the Latin words “mors,” meaning “death,” and “gage,” meaning “pledge.” It was first used in the 14th century to describe the interest charged on a loan secured by property.
Usage Notes
Mortgage interest rates are typically expressed as a percentage and are used to calculate the total cost of borrowing for a mortgage. It’s essential to understand the interest rate when choosing a mortgage option to ensure it’s suitable for your financial situation.
Additional Information
Mortgage interest rates can be influenced by various factors, including economic conditions, credit scores, and loan terms. It’s crucial to research and compare interest rates from different lenders to find the best option for your needs. Additionally, understanding the fees and penalties associated with mortgage interest rates can help you make informed decisions when borrowing.
Mortgage interest rates can also be impacted by central bank decisions, such as changes to monetary policy, which can affect the overall interest rate landscape.
Cultural References
Mortgage interest rates have been referenced in various forms of media, including films, literature, and music.
Idiomatic Expressions or Phrases
Mortgage interest rates are often used in idiomatic expressions, such as “paying interest” or “being charged interest.”
Related Words or Phrases
Other related words and phrases include “interest rate,” “borrowing rate,” “loan rate,” and “credit score.”
Collocations
Mortgage interest rates are often used in collocations, such as “low interest rate” or “variable interest rate.”
Frequency of Use
Mortgage interest rates are commonly used in everyday conversations, particularly among individuals or businesses seeking financial information.
Common Misspellings
Common misspellings of mortgage interest rates include “mortage interest rates” and “morgage interest rates.”