Category: APR – Annual Percentage Rate

THE DIFFERENCE BETWEEN APR AND INTEREST RATE

  Here is a nice article explaining the difference between APR and interest rate.   https://www.bankrate.com/mortgages/apr-and-interest-rate/     We offer a variety of products and services, ask us how we can assist you today: Counsel Mortgage Group®, LLC www.counselmortgage.com 480-502-1000 NMLS #178927 AZ MB #0909580 CA DBO #60DBO43873 Copyright © 2020 Counsel Mortgage Group®, LLC.

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THE ANNUAL PERCENTAGE RATE

The APR discloses the cost of credit and is calculated by taking into consideration the finance costs of the loan; disclosing those costs in terms of the interest rate. APR is usually different than the note rate on the loan.

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YOU SHOULD NOT BLINDLY RELY ON THE PUBLISHED RATE

Published rates entice you, but may not give you the whole story: Often times we get asked, “I saw this rate on-line, can you match it?” Generally, we can, or can beat it, but you have to make sure you are comparing apples to apples. There are many factors that go into an interest rate. Credit score, amount of down payment (or equity in the home if a refinance), if it is a purchase or refinance, whether it is a primary residence, second home or investment property, and the type of home (e.g., single family residence or condominium) are all...

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A SIMPLE COMPARISON OF APRs IS NOT ALWAYS TELLING

The APR discloses the cost of credit. The APR is calculated by taking into consideration the finance costs of the loan, and disclosing those costs in terms of the interest rate. The APR is usually different than the note rate on the loan. Often, on a 30-year fixed mortgage, the APR is higher than the note rate. This is due to the costs of the loan. Typical costs that affect the APR are underwriting, processing, origination, discount, escrow, and prepaid interest. Be careful, a simple comparison of APRs will not tell you what product has the lowest rate and costs....

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