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Mortgage Glossary

Below is an A-Z glossary of general terms used within the mortgage industry. Click on any term to view a detailed explanation. Use the alphabet below to navigate quickly to a term beginning with:

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Effective Rate

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Commonly referred to by brokers or comparison tools. The effective rate is the actual interest rate that you will be paying based on the compounding throughout the year. For example, a rate of 6% APR is actually a rate of 0.5% per month which is an effective rate of 6.17%.

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