Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

Is comparing Annual Percentage Rates (“APR”) an effective way to choose between two different mortgages?

April 26, 2017annual comparing different effective mortgages PERCENTAGE rates

0

Posted

Is comparing Annual Percentage Rates (“APR”) an effective way to choose between two different mortgages?

1 Answer

0

Posted

No. The APR is based on a fatal assumption that you will hold the mortgage note for its entire term, typically 30 years. If you hold the note for less time than its entire term, then the APR begins to move higher. The shorter the time you hold the note, the higher the APR. The best way to shop for a mortgage is to insist on a mortgage with the lowest rates and lowest costs. Only Scout Mortgage offers both and we’ll pay $500 to anyone who proves us wrong.