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Glossary of Terms > E > Effective Rate

Effective Rate

Two meaning: In one context it refers to a measure of interest cost to the borrower that is identical to the APR except that it is calculated over the time horizon specified by the borrower. The APR is calculated on the assumption that the loan runs to term, which most loans do not.

E Terms

Earnest Money Deposit (EMD)

Effective Rate

Equity

Escrow

Examination of Title