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Blended Rate

Blended Rate

A blended rate is a way for borrowers to refinance their current loan with a lower interest rate while still taking advantage of some of the positives of the old loan. It is especially beneficial for borrowers who have already paid off a portion of their loan and want to continue paying off the remaining balance. By combining the rate of their existing loan with a new rate, the borrower can take advantage of the lower interest on the original loan while still getting a lower overall rate, granting them the opportunity to pay off the remaining balance at a rate they can afford. Generally speaking, the blended rate is lower than either the old or new loan alone, making it a great option for borrowers looking to refinance at a lower rate. However, it is important to calculate the long-term savings with a blended rate before signing on the dotted line, to make sure the new rate really is the best option for reducing the overall cost of the loan.

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