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ARM rates

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kbrat Guest 0.10 Dollars($)	Posted: Wed Apr 23, 2008 2:18 pm    Post subject: ARM rates Why is the APR on an ARM lower than the actual interest rate? _________________ Need help choosing the right loan? Get free consultation from community lenders/consultant
adonis Joined: 22 Oct 2005 Posts: 1236 Location: ALASKA 105.68 Dollars($)	Posted: Wed Apr 23, 2008 9:26 pm    Post subject: Welcome Kbrat, I'm quite surprized at the APR being lower than the interest rate becuse usually it is higher as it includes the loan costs as well as the interest rate at which you pay your mortgage. It's actually the effective rate implying the total costs of the loan including the closing costs as well as the interest you pay. _________________ Procrastination is the enemy of your financial sucess
gmakerley Community Mentor Joined: 09 Nov 2007 Posts: 818 Location: bloomfield, ct 51.66 Dollars($)	Posted: Thu Apr 24, 2008 6:03 am    Post subject: i agree - apr ought to be higher than the quoted rate in every case. you'd best go back to the lender and ask for another good faith estimate - there appears to be something quite wrong with what they've quoted you. _________________ George M. Akerley Relationship Manager First Horizon Home Loans 37 Jerome Avenue Bloomfield, CT 06002 860-286-9133 www.gmakerley.net
securityonefinancial Joined: 19 Jun 2008 Posts: 5 10.83 Dollars($)	Posted: Fri Jun 20, 2008 10:03 am    Post subject: Security One Financial I agree with George, ask for a good faith estimate. Some companies underquote to "get you in" but might later increase. [Promotional text deleted as per the forum rules]
chrisburns Joined: 13 Nov 2007 Posts: 82 Location: Florida 24.43 Dollars($)	Posted: Fri Jun 20, 2008 10:06 am    Post subject: I can't see a situation where that would be the case. _________________ Chris Burns Five Stars Mortgage, LLC Office: 800-871-2636 ext. 200 Cell: 407-456-3697 Residential & Commercial Loans Mortgage Forums
brian1 Joined: 14 Jun 2008 Posts: 165 Location: Northern California 33.09 Dollars($)	Posted: Fri Jun 20, 2008 8:53 pm    Post subject: I have heard of this and it usually has to do with the current index plus margin being below the rate being sold. It can happen but I have never seen it. Ask the person that generated it. If they have a reason and can explain it fill us in..... Brian _________________ Licensed Broker http://www.aimwithfocus.com Secure Application www.applyonlinesecure.com
banker0679 Community Experts Joined: 15 Nov 2007 Posts: 270 Location: Charlotte, North Carolina 15.21 Dollars($)	Posted: Sat Jun 21, 2008 7:54 pm    Post subject: It happened in the last months The 1 Year LIBOR Rate jumped from 2.48625 to 3.164. If you use the index 2.486 for the rate of 5.5%, you will clearly see that the APR is lower. _________________ Current Mortgage Rates FHA Mortgage Loans Home Mortgages in North Carolina
brian1 Joined: 14 Jun 2008 Posts: 165 Location: Northern California 33.09 Dollars($)	Posted: Sun Jun 22, 2008 6:54 pm    Post subject: If I remember right it happened a few years ago when the Libor was really low as well. It isnt a bad thing.just rare Brian _________________ Licensed Broker http://www.aimwithfocus.com Secure Application www.applyonlinesecure.com

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