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.
effective interest rate
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.
