Blended Mortgage
A blended mortgage occurs when a borrower combines their existing mortgage rate with a new rate, usually when adding funds or extending their mortgage. Instead of breaking the mortgage entirely, the lender blends the two rates into one weighted average.
The resulting rate reflects both the original and new borrowing amounts.
Why this matters:
Blending can reduce penalties, but it may not offer the lowest available rate. Understanding how blended rates are calculated helps borrowers compare this option with refinancing.
Related Mortgage Terms
Often confused with:
Refinancing — Refinancing changes the mortgage; blending is one possible pricing approach during that change.
Closely related
Mortgage Term — Blends often happen mid-term or at renewal decisions.
Interest Rate — The blended rate becomes your new effective rate.
Next step
Refinancing — Understand when changing your mortgage makes sense and what it can cost.