Mortgage rates Meaning and Definition
Mortgage Rates
Pronunciation
/ˈmɔːrtɡɪd ˈreɪts/
Part of Speech
Noun
Definition
The rate of interest charged on a mortgage, expressed as a percentage of the loan amount, influencing the amount of repayment and the total cost of the loan.
Etymology
The term “mortgage” comes from Old French “mort gage,” meaning “dead pledge,” referring to the lender’s ability to seize the property if the borrower defaults. The term “rate” refers to the percentage of interest charged.
Usage Notes
Mortgage rates can influence the housing market, as changes in interest rates can affect the affordability of homes. When the economy is strong, mortgage rates tend to rise, making it more expensive for borrowers to secure a mortgage.
Cultural References
Mortgage rates have been referenced in popular culture, such as in the song “Mortgage Rates” by funk band Parliament.
Idiomatic Expressions or Phrases
- “Lock in a good mortgage rate” means to secure a favorable interest rate for a loan.
Related Words or Phrases
- Credit score
- Loan
- Interest rate
Collocations
- Mortgage rates are influenced by the economy.
- The bank offers competitive mortgage rates.
Frequency of Use
Mortgage rates are commonly discussed in financial news and used by homeowners, lenders, and real estate professionals.
Common Misspellings
- Mortigage rates
- Morgage rates