What is a mortgage rate?

A mortgage rate is the interest rate charged by a lender on a mortgage loan. It is the amount of interest that the borrower will pay on top of the principal amount borrowed over the life of the loan. Mortgage rates can be fixed, meaning they remain the same for the entire term of the loan, or adjustable, meaning they can change periodically based on market conditions. The mortgage rate is one of the key factors that determines the overall cost of a mortgage.