Loans By Kathy: APR - Annual Percentage Rate Defined

APR - Annual Percentage Rate Defined

APR - Annual Percentage Rate Defined.  Annual Percentage Rate (APR) is probably one of the most asked questions by homebuyers searching for a new mortgage or homeowners that wish to refinance their existing mortgage.

The Annual Percentage Rate (APR) is an effective way to determine the cost of borrower money.  The Annual Percentage Rate (APR) is used not only for mortgages but also car loans, personal loans, and credit cards.

The most important fact to remember, is that your note rate and the annual percentage rate are completely different.  The note rate is the rate that is used to determine your principal and interest payment.  The annual percentage rate should be used for comparison between programs or when comparing the offerings from more than one lender.

 

Here is a great tool for you to use in calculating the Annual Percentage Rate

http://www.endmemo.com/financial/apr.php

 

If you found this blog valuable, please subscribe by clicking the button to the right.  

Signature 

 


 


Kathy Sheehan Senior Loan Officer

P:

770.634.4021

F:

404.745.8060

 

Bay Equity LLC

FacebookTwitterLinkedInApply Now

11475 Great Oaks Way, Suite 350, Alpharetta, GA 30002

800.BAY.3703 Bay Equity LLC NMLS ID#76988


 

 

What to learn more, Google Me!

 

 

The opinions and general information in this blog are soley those of Kathy Sheehan.  Specifics regarding an individual case should be discussed in detail with a loan professional.  For a confidential consultation, please feel free to contact me via phone or email.  All terms and conditions are subject to change.

 

Comment balloon 8 commentsKathy Sheehan • November 24 2013 05:56PM

Comments

Hi Cathy,

Thanks for leaving us that tool.  It is helpful for every credit decision. I saved it to my favorites.

Posted by Grant Schneider, Your Coach Helping You Create Successful Outcomes (Performance Development Strategies) almost 4 years ago

Grant,always happy to help out.

Posted by Kathy Sheehan, Senior Loan Officer (Bay Equity, LLC 770-634-4021) almost 4 years ago

The APR tells more of the story with all the sources of income earned on the loan. It is so confusing to the consumers.

Posted by Debbie Reynolds, Your Dedicated Clarksville TN Real Estate Agent (Platinum Properties) almost 4 years ago

Kathy:  Great, easily understood explanation of this often misunderstood part of the mortgage process.  As Debbie say correctly ... it is often very confusing to Borrowers.  Your explanation should help them greatly ...

Gene

Posted by Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi, 708.921.6331 - 40+ yrs experience (NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656) almost 4 years ago

Debbie, it is the most frequently asked question.

Posted by Kathy Sheehan, Senior Loan Officer (Bay Equity, LLC 770-634-4021) almost 4 years ago

Gene, thanks for the compliment.  I am sure you have answered the same question many times.

Posted by Kathy Sheehan, Senior Loan Officer (Bay Equity, LLC 770-634-4021) almost 4 years ago

Kathy concise explanation of APR and a very helpful tool to have when the questions comes up.

Posted by Jennifer Fivelsdal, Mid Hudson Valley real estate connection ( JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571) almost 4 years ago

Happy to help Jennifer!

Posted by Kathy Sheehan, Senior Loan Officer (Bay Equity, LLC 770-634-4021) almost 4 years ago

Participate