Browse Our Site:
Search Mortgage Library:
Types Of Mortgage Loans Mortgage Lender Directory  +  Mortgage Calculators  +  Mortgage (ARM) Indexes Mortgage Market Survey
+ Find The Best Mortgage + Ask A Mortgage Related Question  +  Articles And Publications  +  Mortgage Glossary + Search Mortgage Rates +
Credit Grade Guide Historical Mortgage Index Data  +  Historical Mortgage Rate Data  +  Home Interest Rate Trends

What is APR?

Mortgage Library: Ask a Mortgage Related Question: Answers: What is APR?


Please explain what is APR and how it is calculated.



Hello and thank you for your question.

The APR is an interest rate that is different from the note rate. The APR is an interest rate reflecting the cost of a mortgage as a yearly rate. This rate is likely to be higher than the stated note rate or advertised rate on the mortgage because it takes into account points and other credit costs, e.g. fixed rate loan at 8% with 1 point has an APR of 8.107%. The APR allows home buyers to compare different types of mortgages based on the annual cost for each loan. The APR does NOT affect your monthly payments. Your monthly payments are a function of the interest rate and the length of the loan. 


S. M.

Mortgage Lender Directory + Find The Best Mortgage + Search Mortgage Rates

Mortgage-Related Questions Answered

Mortgage professionals are welcome to participate!
Home  +  About Us  +  Contact Us  +  Disclaimer  +  Privacy Policy
Mortgage-X is an independent information service and is not affiliated with any lending institution.
Copyright 1998-2017
All Rights Reserved