Interest Rate News
Mortgage
A Mortgage is a formal document which proves the legal claim or lien on your property that your lender holds as security for the money you borrowed. There are two people involved in a mortgage, you and the lender. You pledge the property as security for the repayment of the money you borrowed, but you do not transfer title to the lender. However, if you do not pay the debt as agreed the lender, through a court proceeding, can compel the sale of your property to pay off your debt.
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Interest
Interest is an amount charged to the borrower for the privilege of using the lender's money. Interest is usually calculated as a percentage of the principal balance of the loan. The percentage rate may be fixed for the life of the loan, or it may be variable, depending on the terms of the loan.
The cost of borrowing money; the price that a lender charges a borrower for the use of the lender's money. Interest is paid on deposits because they are, in effect, loans to the bank or other deposit-taking institutions.
Interest Rate
The rate of interest charged for the use of money, usually expressed as an annual rate. The rate is derived by dividing the amount of interest by the amount of principal borrowed. For example, if a bank charged $50 a year to borrow $1,000, the interest rate would be 5%. Interest rates are quoted on bills, notes, bonds, credit cards and many kinds of consumer and business loans. Rates in general tend to rise with inflation and in response to the Federal Reserve raising key short-term rates. A rise in interest rates has a negative effect on the stock market because investors can get more competitive returns from buying newly issued bonds instead of stocks. It also hurts the secondary market for bonds because rates look less attractive compared to newer issues.
Mortgage Interest Rate
A Mortgage Interest Rate is the interest rate on a mortgage loan.