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Mortgage Glossary

Interest Rate

Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker

An interest rate is the percentage a lender charges annually for borrowing the mortgage principal, separate from fees.

What Interest Rate means

It directly sets your principal-and-interest payment. Your rate depends on credit score, down payment, loan type, and the broader market. Unlike APR, it excludes lender fees and points.

Florida example

A Florida borrower with a 760 score might lock 6.5% while a 640-score borrower sees 7.25% on the same loan. Even a quarter-point difference changes the payment by tens of dollars a month over 30 years.

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