Why is the Annual Percentage Rate (APR) on the Truth in Lending Disclosure higher than the rate shown on my mortgage note?
The APR rate reflects the cost of your mortgage loan as a yearly rate. This rate is generally higher than the rate stated on your mortgage note because the APR includes other costs, such as origination fee, loan discount points, pre-paid interest and mortgage insurance (if required). The APR allows you to compare, in addition to the interest rate, the total cost of financing your loan, among various lenders.
The APR rate reflects the cost of your mortgage loan as a yearly rate. This rate is generally higher than the rate stated on your mortgage note because the APR includes other costs, such as loan discount points, pre-paid interest and mortgage insurance (if required). The APR allows you to compare, in addition to the interest rate, the total cost of financing your loan, among various lenders.
The APR rate reflects the cost of your mortgage loan as a yearly rate. This rate is generally higher than the rate stated on your mortgage note because the APR includes other costs, such as origination fee, loan discount points, and pre-paid interest. The APR allows you to compare, in addition to the interest rate, the total cost of financing your loan, among various lenders.
Related Questions
- Why is the Annual Percentage Rate (APR) on the Truth in Lending Disclosure higher than the "rate" shown on my note, which is the rate I thought I chose for my first mortgage or equity loan?
- Why is the Annual Percentage Rate (APR) on the Truth in Lending Disclosure higher than the rate shown on my note, which is the rate I thought I chose?
- Why is the Annual Percentage Rate (APR) on the Truth in Lending Disclosure higher than the rate shown on my mortgage note?
