What is the Mortgage Interest Rate also known as?

The Mortgage Interest Rate, which is the rate at which interest accrues on a mortgage loan, is commonly referred to as the mortgage yield rate. This term emphasizes the return on the investment that lenders expect to earn from mortgages, highlighting the connection between the rate and the profitability of mortgage-backed securities and related financial instruments.

In the context of mortgages, this yield reflects how much interest a lender earns on the amount financed over the life of the loan. Using this term helps differentiate the specific type of interest rate that applies to mortgage loans from other general rates of interest.

The other terms listed serve different purposes in the realm of finance and lending. For example, the effective interest rate considers the impact of compounding interest, while the annual percentage rate (APR) includes not just the interest rate but also additional costs associated with obtaining the loan. The nominal interest rate represents the stated interest rate without adjusting for inflation or other factors. While these terms relate to interest, the distinct focus of mortgage yield rate on mortgage loans specifically makes it the appropriate answer.