One of the biggest mortgage misconceptions is the confusion between your mortgage interest rate & Actual Percentage Rate (APR). Many borrowers mistake the fact that your interest rate does include all your mortgage fees. On top of your rate-lock there will be additional closing costs and the total of these costs is what is factored into APR.
Generally, your APR is going to be higher than your interest rate. Many people think that the loan with the lowest APR is automatically the best deal. That is not always true unless you keep your mortgage for the entire length of your loan term. If not, the upfront costs of getting your mortgage are spread out over a shorter period of time which can change the true cost of the loan.
If you have any other questions in regards to mortgage interest rates & APR please comment below or email us at info@ranlife.com .
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