What Is the Interest and Annual Percentage Rate (APR)?
The interest rate used to calculate your total cost over the live of the loan and the amount of your monthly payment. (The higher your interest rate the more your monthly payment will be). The APR is derived by calculation that includes the interest rate and all the other related lender fees divided by the loan term. 3. What Are the Discount Points and Origination fees? Each point equals 1% of the loan amount. Therefore 1 point on a $200,000 loan cost $ 2,000. Points are a way to buy down the interest rate. The more points you pay the lower your interest rate. Landers may have some restrictions on points buy down. Points are tax deductible, no matter who pays for them. The longer you plan to stay in the home the more it worth it to pay for discount points. 4. What Are The Closing Costs? Closing costs are fees included in your loan, usually include charges for credit reports deed search and more.Your lender is required by law to provide a good faith estimate of your loan’s closing costs
