APR stands for annual percentage rate and is used to determine the annual cost of the loan. There are many myths about this real estate mortgage term and in this blog post I thought I would clear up some important misconceptions. Some important things to remember are that it:
o Doesn’t affect your monthly payment
o Measures the true cost of loan
o Varies by lenders because each calculates the APR differently
Typically the following fees are included in APR but depending on the mortgage lender this is why you will see varying APRs.
· Points – discount & origination fee
· Pre-paid interest (typically 15 days is common number used, however company can use any number between 1 and 30
· Loan process fee
· Underwriting fee
· Document & Prep fee
· PMI (Private Mortgage Insurance)
· Sometimes included – loan app fee
We have several mortgage partners we work with who can pre-qualify you over the phone and answer this and any other questions regarding mortgage terms and help walk you through the application process. Contact a member of the Keith Jackson Realty Team at 480-363-2019 to help you buy, sell or invest in Arizona real estate.
Our professional real estate services team look forward to working with you.