How does the interest rate on a mortgage affect the cost of a home loan?

The interest rate on a mortgage is a key factor in determining the overall cost of a home loan. A higher interest rate means a higher cost of borrowing, as you will pay more in interest charges over the life of the loan. Conversely, a lower interest rate means a lower cost of borrowing, as you will pay less in interest charges over the life of the loan. Even a small difference in interest rates can add up to thousands of dollars over the life of a mortgage.