RATE EDUCATION · MA AND NH
How to read a mortgage rate quote
Rewritten October 27, 2026. The earlier May article address is retained for existing links.
Interest rate and APR answer different questions
The note rate describes interest charged on the loan. APR incorporates certain additional borrowing costs. Compare similar products and terms; APR alone cannot resolve differences between fixed and adjustable loans, expected holding periods or future rate changes.
Ask what produced the quote
Request the date, product, loan amount, term, down payment or equity, points and lender credits. Ask what borrower and property assumptions were used. A general survey or calculator assumption is not an individual approval or price offer.
Confirm a rate lock separately
Check whether the Loan Estimate says the rate is locked and for how long. Ask about extension costs, delayed closing, changed application details and whether a lower rate can be obtained if the market changes. A preapproval does not automatically lock the rate.
Put the payment in context
Separate principal and interest from taxes, insurance, mortgage insurance and other ownership costs. For refinance, compare closing costs and remaining balances over an equal period. Do not call a smaller payment guaranteed savings when the debt has been extended.