Face Interest Rate

Sam · 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'.

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