The contract interest rate, also known as the face interest rate, is the interest rate specified in a loan agreement or mortgage note. This rate is used to calculate the periodic interest payments owed by the borrower throughout the loan term.
The contract rate, also known as the face interest rate, is the interest rate specified in a loan agreement or bond contract, stipulating the amount of interest that will be paid by the borrower or issuer.
The face interest rate is the percentage interest specified on the loan documents, representing the nominal annual interest rate before accounting for additional fees or compounding periods. This term is often compared with the Annual Percentage Rate (APR) and the Effective Rate.
The nominal loan rate, also known as the face interest rate, is the percentage of interest charged by the lender on the loan's outstanding principal balance. It does not account for inflation or other complex variables such as fees or compounding.
