What is note rate?
The contract interest rate that determines how interest accrues on the loan balance. It understates the loan’s full economics once origination points and closing costs are included; that is what lender’s yield and EBC measure.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.