Pay Rate
The pay rate is the periodic rate at which interest is paid on a mortgage. In some structures it may differ from the accrual rate.
- Where it applies
- Generally, not specific to New York
- When it comes up
- Structuring; servicing; investor reporting
- Property types
- Residential and commercial
In practice
When modeling debt service, confirm whether the pay rate is used for borrower payments versus investor certificate payments in a securitized structure.
Related terms
Residential Financing
- Accrual Rate
- Adjustable Rate Mortgage (ARM)
- Amortization
- Application (TRID application)
- Conforming Loan Limit
- PMI Automatic Termination
- PMI Cancellation (Borrower-Requested)
- Private Mortgage Insurance (PMI)
- Secured Overnight Financing Rate (SOFR)
- TILA-RESPA Integrated Disclosures (TRID)
General information, not legal, tax or financial advice.