What does mortgage par rate mean
Interest Rate – The interest rate is the cost of borrowing money and is used to calculate your monthly mortgage payment. The higher the interest rate, the higher your monthly payment will be, and vice versa. A negative interest rate means banks would pay a small amount of money each month to park some of their money at the Fed – a reversal of how a bank typically works. Banks, in turn, could pass those interest costs to customers by charging for deposits. The par rate, or as close as we can get to par, on the 30-year fixed for a 30-day lock is 4.625%, as pictured above. It’s the number closest to 100 without being below 100. It means if you have no pricing hits or pricing incentives based on your unique loan parameters,