Definition: The current rate of mortgage is the interest rate that a borrower is paying on their loan, as of the most recent date available to lenders. This rate can be calculated by dividing the monthly payment by the loan amount. For example, if a borrower is currently paying $1200 per month for a 30-year fixed-rate mortgage with a principal balance of $500000 and a current interest rate of 4.9%, their current rate of mortgage would be: $$ \text{Rate} = \frac{\text{Monthly Payment}}{\text{Loan Amount}} = \frac{\$1200}{\$50,000} = \$0.24 per month. $$ Note that the monthly payment can also be calculated by dividing the principal balance by the loan amount and then multiplying by the interest rate. For example: $$ \text{Monthly Payment} = \frac{\text{Loan Amount}}{\text{Interest Rate}} $$ This is the current mortgage rate, which you should use in conjunction with your credit score to determine if you qualify for a loan with a lower interest rate or a better rate than the one offered by the lender.
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