Wednesday, July 24, 2019

Shopping rates? Why the APR is the most important rate

Mortgage Quest
a dba of McCormick Lending Group, Inc.

Click Here to see how we operate differently so that you "Don't Overpay For Your Mortgage".

What is the difference between a mortgage interest rate and an APR?

An annual percentage rate (APR) reflects the mortgage interest rate plus other charges
There are many costs associated with taking out a mortgage. These include:

  • The Interest Rate
  • Points
  • Fees
  • Other charges
The interest rate is the cost you will pay each year to borrow the money, expressed as a percentage rate. It does not reflect fees or any other charges you may have to pay for the loan.
An annual percentage rate (APR) is a broader measure of the cost to you of borrowing money, also expressed as a percentage rate. In general, the APR reflects not only the interest rate but also any points, mortgage broker fees, and other charges that you pay to get the loan. For that reason, your APR is usually higher than your interest rate.
If you have applied for a mortgage and received a Loan Estimate from one or more lenders, you can find the interest rate on page 1 under “Loan Terms,” and the APR on page 3 under “Comparisons.” 

In-House Bridge Loans Available (purchase before selling and remove contingency)

Mortgage Quest a dba of McCormick Lending Group, Inc. We offer In-House Bridge Loans for borrowers who want to purchase a new pro...