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What is the difference between a mortgage rate quoted and the APR? Which one should I be looking at when I am looking at lower mortgage rates?

April 26, 2017Apr difference lower mortgage mortgage rates quoted rate

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What is the difference between a mortgage rate quoted and the APR? Which one should I be looking at when I am looking at lower mortgage rates?

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Along with the stated interest rate on the mortgage, it includes how points and closing costs affect that rate. Using an APR to compare loans isn’t a definitive comparison, because the Truth-in-Lending Act allows lenders to estimate closing costs and permits some rounding, but it’s a better measure to use when comparing loans than the stated interest rate.