blended rate

Definition

An averaged interest rate combining multiple loans or tranches of debt, making your actual cost of borrowing sound better than it is. Financial smoothie blending various percentages into one palatable number.

Example Usage

Their blended rate of 4.5% sounded reasonable until they realized it included a first mortgage at 3.5% and a second at 7%, weighted very unfavorably.

Origin

Financial terminology applied to complex loan structures

Fun Fact

Blended rates are mathematically accurate but psychologically misleading, which is precisely why they're popular in marketing materials.

Source: Mortgage and commercial lending terminology

Related Terms

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renovate

To take something old and tired and dump unreasonable amounts of money into it while convincing yourself it's an 'investment' rather than an expensive hobby. In real estate, it's the process of transforming a dated property into something Instagram-worthy, usually involving copious amounts of subway tile, exposed brick, and budget overruns. The verb that turns homeowners into temporary construction experts who suddenly have strong opinions about grout colors.

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Advanced

Earnest Money Dispute

When buyer and seller fight over who gets the deposit if the deal falls apart—the worst kind of relationship counseling.

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Due-on-Sale Clause

A mortgage clause requiring full repayment when the property sells, preventing assumption of loans on favorable terms.

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walking the comps

The noble art of physically visiting comparable properties to verify that online photos haven't been taken with a fisheye lens from the ceiling. It's due diligence for agents who don't trust Zillow's measurements or the laws of physics.

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Intermediate

rights-of-way

The legal privilege to cross or use someone else's property for a specific purpose, typically for accessing your landlocked parcel or running utilities through their yard. These easements create permanent pathways that survive ownership changes, meaning future owners inherit both the right and the awkwardness of strangers traipsing across their land. It's neighborly cooperation enforced by legal documentation instead of friendliness.

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wholesaling

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