How Do You Determine Best Mortgage Rate With & Without Points?
Homeowners looking to refinance, or buyers looking to secure a mortgage, are always looking for the best deal on a mortgage. Many assume that simply the lowest rate possible is the best deal for the mortgage. However, it is the annual percentage rate, or APR, that really tells the borrower whether they are getting the best deal. Here is how to determine a best mortgage rate, with and without points, by using the APR. Ask each lender you are shopping for rates to provide you with a Truth-In-Lending Statement and a Good Faith Estimate along with its best interest rate. The Truth-in-Lending Statement is required by law to calculate the APR for the loan with exactly the same calculation as every other lender in the country. The Good Faith Estimate simply outlines the fees charged on the loan. Look at each Truth in Lending Statement. In a box in the top left-hand corner will be the APR for the loan. The lowest APR is the lowest overall priced loan. The APR takes into consideration the month
