Effective Interest Rate is the cost of credit on a yearly basis expressed as a percentage. Includes up-front costs paid to obtain the loan, and is, therefore, usually a higher amount than the interest rate stipulated in the mortgage note. Useful in comparing loan programs with different rates and points.
Barry Goldsmith
| APA | Barry Goldsmith. (2010). effective interest rate. Retrieved September 23, 2026, from http://smartdefine.org/effective_interest_rate/definitions/1152763 |
| Chicago | Barry Goldsmith. 2010. "effective interest rate" http://smartdefine.org/effective_interest_rate/definitions/1152763 (accessed September 23, 2026). |
| Harvard | Barry Goldsmith 2010, effective interest rate, Smart Define, viewed 23 September, 2026, <http://smartdefine.org/effective_interest_rate/definitions/1152763>. |
| MLA | Barry Goldsmith. "effective interest rate" 21 October 2010. Web. 23 September 2026. <http://smartdefine.org/effective_interest_rate/definitions/1152763> |