The Note rate refers to the interest rate that is set at the time the loan is originated, it is the rate at which the borrower will pay interest on the loan. It can be fixed or adjustable, if the loan is adjustable, the note rate may change over time. The note rate is important to the borrower as it will determine the monthly payment, the amount of interest paid over the life of the loan and the overall cost of borrowing. It is also important for the lender as it helps to determine the profitability of the loan. The note rate can be influenced by many factors, including the creditworthiness of the borrower, the loan term and the amount of the loan.

Real Estate Glossary | What is Note Rate??

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