GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

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Note Rate


Synonyms:interest rate, percentage, promised rate
Filed Under: financial-banking, mortgages
Tags: banking, mortgage, rates
 

Definition of note rate

note rate
1. Percentage a borrower pays for the use of money, usually expressed as an annual percentage, as specified on a promissory document.

Related Terms and Acronyms:

  • annual mortgage statement   A report sent to the borrower every year, detailing how much principal remains on the home loan and how much was paid in taxes and interest during the previous year.
  • annual percentage rate (APR)   A yearly rate of interest that includes fees and costs paid to acquire the loan. Lenders are required by law to disclose the APR. The rate is calculated in a standard way, taking the average compound interest rate over the term of the loan, so borrowers can compare loans. In mortgages, it is the interest rate of a mortgage when taking into account the interest, mortgage insurance, and certain closing costs including points paid at closing. There is no APR in an automobile lease; instead, the cost of money is expressed as the money factor.
      ➥  A number used to compare costs associated with mortgage loans and other forms of financing.
  • note   A legal acknowledgement of a debt and an implicit promise to repay. It includes the loan amount, interest rate and term.
  • rate   Percentage a borrower pays for the use of money, usually expressed as an annual percentage.

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