 Sam
Site Admin
Joined: 21 May 2005
Posts: 281
Location: CALIFORNIA
117.49 Dollars($)
|
 Posted: Sat Apr 10, 2004 3:26 am Post subject: Face Interest Rate |
|
|
Face Interest Rate is the percentage interest rate provided in the mortgage loan document. The lender agrees to offer a mortgage through a loan approval or written commitment. The written commitment reveals all the terms of the agreement, such as the loan amount, face interest rate, fees, and charges.
For example, Kris takes a loan of $500,000 from Daniel. Both of them signs the loan document. The document states that Kris is taking a loan of $500,000 for 10 years at 5% interest rate from Daniel. It also reveals the other terms and conditions. This 5% interest rate as stated in the loan document is known as 'Face Interest Rate'. |
|
