Real Estate Glossary

effective interest rate

inflation calculator
Written by Kevin Coulston

Expressed as a percentage, effective interest rate is the cost of credit on an annual basis. This includes an up-front payment to acquire the loan. It is typically a higher amount than the interest rate specified in the mortgage note. Effective interest rate is useful in comparing loan programs with different points and rates.

Expressed as a percentage, effective interest rate is the cost of credit on an annual basis. This includes an up-front payment to acquire the loan. It is typically a higher amount than the interest rate specified in the mortgage note. Effective interest rate is useful in comparing loan programs with different points and rates.

About the author

Kevin Coulston

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.