What is the Annual Percentage Rate (APR)? or Why is my rate different than what I was told? or Why is the paperwork different than what was quoted?
These are excellent and super common questions.
APR is confusing and oftentimes not understood.
The APR of a mortgage loan is designed to include all the costs for obtaining the loan, in addition to the interest rate itself.
This video explains how "interest rate" and "APR" differ, why APR was established in the first place, and an alternative shopping guide to help
Please let me know if you've further questions!
Michael Hausam is a licensed Real Estate Broker (BRE Agent #1319560) and Mortgage Loan Originator (NMLS # 1577195). He's been a resident of Orange County, CA since 1990, he funded his first mortgage loan in 1991, has had a B-1 general contractors license since 2005, and he has had his real estate license for over 21 years. Recently, he was awarded the International Presidential Elite status at Coldwell Banker, for agents in the top 2%.