What is APR and why is it different than my interest rate? Hi, I'm Tim Whitmire I'm a Senior Mortgage Banker with First Integrity Mortgage
APR stands for Annual Percentage Rate The APR considers all the costs in a transaction, such as closing cost and PMI, and turns it into a rate The APR is higher than the interest rate when you get a mortgage because the APR is the interest rate plus all the other closing costs and fees associated with the transaction The interest rate and the APR on car loans and credit cards are the same because there are no closing cost when you get a car loan or credit card The purpose of the APR is to give you, the consumer, a sense of the true cost of the loan
The higher the closing fees, the greater the difference you'll see between your interest rate and APR The APR in a typical transaction is typically a quarter percent higher than your rate The APR on a transaction with PMI will be significantly higher than your interest rate because there's PMI added to it I would love to help you, your family, and your friends with your mortgage and your needs Please give me a call (314) 402-8184
(314) 402-8184 I look forward to working with you!