"The mortgage rate refers to the ratio between the amount of loan and the value of the mortgage. During the loan process, the lender usually requires the borrower to provide the mortgage in order to recover the losses when the borrower cannot repay on time. The mortgage rate is the evaluation. One of the important indicators of mortgage value, it determines the maximum amount that the lender can borrow.

For example, if the market value of a house is $ 1 million and a borrower wants to borrow a loan of $ 500,000, the lender may require a mortgage rate of 50%. This means that the ratio of loan amount to the value of the housing market is 50%. In this case, if the borrower cannot repay on time, the lender can get 50%of the recovery amount after the auction mortgage to make up for the borrower's loss.

The height of the mortgage rate usually depends on the nature of the mortgage, the market value and the policy of the lender. Different types of mortgagers have different mortgages. For example, houses usually have a high mortgage rate because they are relatively stable assets, and the mortgage rate of mobile property such as cars is usually low because their value is easier to decrease. In addition, different loan institutions will also have different policies. Some loan institutions may require lower mortgage rates to reduce their own risks, while other loan institutions may accept higher mortgage rates to expand their business scope.

During the loan process, the borrower should understand the concept of the mortgage rate and ensure that the appropriate mortgage is selected so that they can get a larger loan amount when needed. In addition, borrowers should also consider their own repayment capabilities to avoid the risk of loan defaults and the recovery of mortgages. The lender should also carefully evaluate the borrower's financial status and repayment ability to ensure that his interests are protected. "