Note Rate
The actual interest rate written on your mortgage promissory note — the rate used to calculate your monthly payment.
The note rate is the contractual interest rate on your mortgage. It is what determines your principal-and-interest payment and what your loan balance accrues against each month. The note rate is different from APR (which folds in fees). When comparing offers, both numbers matter: note rate determines monthly payment, APR captures total cost including fees.
Related terms
APR (Annual Percentage Rate)
Total cost of a mortgage expressed as a yearly rate, including interest plus most loan fees and mortgage insurance.
Fixed-Rate Mortgage
Mortgage with the same interest rate for the entire loan term. Most common is 30-year fixed.
ARM (Adjustable-Rate Mortgage)
Mortgage with a rate that changes periodically after an initial fixed period. Common formats: 5/1, 7/1, 10/1.
Ready to get a rate?
Compare live mortgage rates from hundreds of lenders, no signup required.
Get instant pricing