APR supplied by the lender

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I am going through a mortgage process with a lender in my area. They have supplied me with the APR for the loan term. Can I believe in what they have given to me?

Guest 0.10 Dollars($)

Hi Harris,

The APR given to you should get checked by an experienced mortgage professional to detect any hidden costs that may come up suddenly, pushing you into trouble.

douglas

Samantha · Posted: Wed Jan 04, 2006 2:14 pm Post subject:

Hi Harris,

The annual percentage rate is a strong indicator of the amount of payment that you have to make over the loan term. But it is advisable to get it checked and compared with the existing mortgage rate in the market.

The APR is often higher than the original quote. The final amount will include the lender's fee which may not have been added into the supplied APR.

To be on the safe side, it is better to check the list of fees, points and associated rates for the loan and whether all have been taken into account while calculating the APR. Ask for a good faith estimate for the purpose. This will help to plan for your repayment.

You can refer this section on annual percentage rate to help you understand better. Also check why APR is not regarded as the only indicator for choosing a mortgage.

God bless you.

For MortgageFit,
Samnatha

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