---
title: "Interest rate (note rate) — What It Means | Ondo RE"
canonical: https://www.ondorealestate.com/glossary/interest-rate/
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# Interest rate (note rate)

Also called: note rate, mortgage rate

The percentage charged on your loan balance, the number your principal and interest payment is calculated from.

The note rate is what the promissory note obligates you to pay on the outstanding balance. It drives the principal and interest portion of the payment; it does not include fees, which is what separates it from APR.

A rate you see quoted in the news is an average across many files with assumptions attached. Your rate depends on credit, loan-to-value, occupancy, property type, program, and the day you lock.

## Put a number on it

This term feeds the calculators below.

- [Mortgage Payment CalculatorEstimate monthly mortgage payments with taxes, insurance, and PMI.](/calculators/mortgage-payment/)
- [Buying Power CalculatorSee how rate, down payment, and debts change your buying power.](/calculators/buying-power/)

## Related terms

- [APR (Annual Percentage Rate)The yearly cost of a loan expressed as a percentage, including the interest rate plus most lender fees.](/glossary/apr/)
- [Rate lockA lender’s commitment to hold a quoted interest rate for a set number of days while your loan is processed.](/glossary/rate-lock/)
- [Discount pointsAn optional upfront fee paid to the lender in exchange for a permanently lower interest rate.](/glossary/discount-points/)
- [ARM (Adjustable-Rate Mortgage)A mortgage whose interest rate is fixed for an initial period and then adjusts on a set schedule against an index.](/glossary/arm/)

## Go deeper

- [Mortgage rates explained](/buy/rates/)
- [Why the headline average is not your quote](/blog/mortgage-rate-trends-2025/)

## More in Mortgage & lending

- [Amortization](/glossary/amortization/)
- [APR (Annual Percentage Rate)](/glossary/apr/)
- [ARM (Adjustable-Rate Mortgage)](/glossary/arm/)
- [Cash-out refinance](/glossary/cash-out-refinance/)
- [Closing costs](/glossary/closing-costs/)
- [Conforming loan](/glossary/conforming-loan/)

## Have a question about your own situation?

Ondo handles brokerage, lending, property management and notary under one roof, so the answer does not change depending on who you ask.

[Talk to Ondo](/contact/)[Browse all terms](/glossary/)

Loan information is provided by Ondo Real Estate (NMLS ID on file). This is not a commitment to lend, a loan approval, or an offer of credit. Rates, terms, and payments shown are estimates for illustration only, are not a quote, and are subject to credit approval, underwriting, and market conditions. You are not required to use Ondo for financing to buy or sell with Ondo. Equal Housing Lender. Program rules, fees, and county loan limits change. Confirm the current published schedule and lender overlays. Nothing here is a quote, a lock, or a credit decision. [Licensing and disclosures](/licensing/)