When you hear the term APR you think that the lowest is best.
The article below shows why this is not necessarily the truth. The most common assumptions that are made when deciding which loan is the best deal are:
1) assuming you pay off your loan at term but never before
2) third party costs within the mortgage are sometimes only an estimate and not always accurate so the APR can be quoted lower than it really is
3) lenders for adjustable rate loans may use different assumptions when quoting APR, making an identical loan have different APRs. In summary APR should not be the only thing you consider when you chose your mortgage.
Get the full article below.
What is Annual Percentage Rate?
More commonly called APR, Annual Percentage Rate is a government-mandated mortgage comparison tool. It measures the total cost of borrowing over the life of a loan into dollars-and-cents.
A loan’s APR is printed in the top-left corner of the Federal Truth-In-Lending Disclosure, as shown above. When quoting an interest rate, loan officers [...]
What Is Annual Percentage Rate (APR)? is a post from: Real Estate Investing Blog For Real Estate Investors