An interest rate on a mortgage loan is the cost you will pay each year to borrow the money, expressed as a percentage rate. It does not reflect fees or any other charges you may have to pay for the loan. For example, if the mortgage loan is for $100,000 at an interest rate of 4 percent, that consumer has agreed to pay $4,000 each year he or she borrows or owes that full amount.
Related Articles
Understanding Homestead Rights
In Illinois, when one spouse takes out a mortgage on a property, the other spouse may be required to sign certain documents related to the mortgage and the property’s homestead rights. Here’s why this is typically necessary: Homestead Rights Protection: Homestead Rights in Illinois provide homeowners with certain protections for their primary residence, safeguarding a...
Understanding the Loan Estimate (LE): A Comprehensive Guide for Homebuyers
One of the most important documents you’ll encounter when navigating the mortgage process is the Loan Estimate (LE). This three-page form is crucial for understanding the terms of your loan and comparing offers from different lenders. In this post, we’ll explain what the LE is, why it’s used, and the timelines for executing it, as...
Understanding the Closing Disclosure (CD): A Detailed Guide for Homebuyers
As you approach the final stages of the mortgage process, the Closing Disclosure (CD) becomes a critical document that outlines the final terms of your loan. Reviewing this document carefully before closing on your new home is essential. In this blog post, we’ll explain the CD, its use, and its associated timelines and provide a...
