The rate charged in order to borrow a lender's money. The interest rate takes into account the risk and cost to the lender for a loan. The interest rate depends on the going market rate and how many discount points are paid up-front. An adjustable rate mortgage's interest is a variable rate determined by the index and the margin.
When the term is used in conjunction with a Mortgage Marvel mortgage calculator, the term specifically applies to the annual interest rate for the mortgage.
