Rates and Pricing

Rates and pricing pages explain what a mortgage actually costs, how lenders quote that cost, and why two loans with the same balance can still produce different payments or closing expenses.

Start with Interest Rate, Note Rate, and Annual Percentage Rate (APR) if you want the clearest first pass on mortgage cost language. Those three pages help readers separate the contract rate from broader borrowing-cost measures.

Then move into Discount Points, Origination Fee, Rate Lock, and Lock Period to understand how pricing changes between quote and closing. The section also covers lender-side vocabulary such as Mortgage Rate Sheet and Loan-Level Price Adjustment (LLPA) when those terms materially help borrower understanding.

In this section

• Interest Rate
  Interest rate is the percentage cost charged on the unpaid mortgage balance.
• Note Rate
  Note rate is the contractual mortgage interest rate written into the promissory note.
• Annual Percentage Rate (APR)
  APR is an annualized borrowing-cost measure that combines the mortgage rate with certain finance charges.
• Discount Points
  Discount points are upfront charges paid to lower the mortgage interest rate.
• Origination Fee
  Origination fee is a lender charge for making, processing, or underwriting the mortgage.
• Rate Lock
  A rate lock is a lender commitment to honor specific mortgage pricing for a defined period if stated conditions are met.
• Lock Period
  Lock period is the amount of time a mortgage rate lock remains in effect before it expires.
• Float Down
  A float-down is a feature that can let a borrower improve a locked mortgage rate if market pricing moves favorably.
• Prepaid Interest
  Prepaid interest is the interest collected at closing for the days between loan funding and the start of the normal payment cycle.
• Yield Spread Premium
  Yield spread premium is a mortgage compensation term usually discussed in historical or legacy pricing contexts.
• Mortgage Rate Sheet
  A mortgage rate sheet is a pricing document showing rates, points, and adjustments for different loan scenarios.
• Loan-Level Price Adjustment (LLPA)
  LLPA is a pricing adjustment applied to certain mortgages based on risk-related loan and borrower characteristics.