what is a blended rate 
a blended rate is an interest rate charged on a loan that represents the combination of a previous rate and a new rate blended rates are usually offered through the refinancing of existing loans that are charged a rate of interest that is higher than the old loan s rate but lower than the rate on a brand new loan this type of rate is calculated for accounting purposes to better understand the true debt obligation for multiple loans with different rates or the revenue from several streams of interest blended rates are often used to understand the true interest rate paid when refinancing a loan but they can also be used when adding additional debt such as a second mortgage 