Example Result
Sample DataBased on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.
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Mortgage Interest Rate Formula
User Input (%)
Where to Find This Value
Here's where you can find the value for Mortgage Interest Rate:
Loan Estimate
Your lender provides the interest rate on the official Loan Estimate form
Lender Quote
Contact your mortgage lender or broker for current rate quotes
Freddie Mac PMMS
Freddie Mac Primary Mortgage Market Survey publishes weekly average rates
Used to Calculate
Mortgage Interest Rate is used as an input for these calculations:
Platform Distribution
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Unlock Rental Property CalculatorWhy It Matters
The mortgage interest rate is the most powerful lever on your debt costs. A 1% rate difference on a $300,000 loan changes your monthly payment by roughly $180 and total interest by over $65,000 over 30 years. Shop multiple lenders, improve your credit score, and consider buying down the rate if you plan to hold long-term.
Detailed Explanation
Mortgage Interest Rate is the annual percentage charged by the lender on the outstanding loan balance. It determines how much of each monthly payment goes toward interest versus principal. Investment property rates are typically 0.5–1.0% higher than primary residence rates. The rate may be fixed for the life of the loan or adjustable after an initial fixed period. Even small rate differences have enormous impact on total interest paid over a 30-year loan.
Example
Based on a sample $385,000 property with $2,850/month rent, 20% down, 7% interest rate.
Related Calculations
Monthly Mortgage Payment
UMonthly principal and interest payment on the mortgage.
Annual Debt Service
2Total annual mortgage payments.
Debt Service Coverage Ratio
2NOI divided by annual debt service — measures ability to cover mortgage.
Loan to Value Ratio
2Loan amount as a percentage of property value.
Debt Yield
2NOI as a percentage of total loan amount.
Monthly Principal Payment
UPrincipal portion of the first month's mortgage payment.
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