What is Interest Rate?
The annual cost of borrowing, expressed as a percentage. Affected by credit, down payment, and loan type. 1% higher = ~$170/month more on $300K loan.
The mortgage interest rate is the cost of borrowing money, expressed as a percentage of the loan amount charged annually. Rates are influenced by economic factors, your credit score, down payment, loan type, and term. The rate directly affects your monthly payment: on a $300,000 loan, each 1% rate increase adds roughly $170/month to your payment.