Interest rate vs. APR
Hi alI. I paid about $1177 for points to bring it to 4.75%.Lender said I would have to live in the house for 4 years (which I will) to make up for the points paid. The reality is that my APR (including fees) bring my rate really to 5.12%.I think it's a significant jump. In your experience, when fees are added, how much does your interest rate jump by? by hetim_987_136 from Downingtown, Pennsylvania. Sep 23rd 2011
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions
You did not provide enough information to answer your question.. percentage is exactly that.. it's a percentage... and in this case it's a percentage of the loan amount... $500 is .5% of $100,000, but $500 is .002% of $250,000... so the lower the loan amount, they higher the percentage will increase... and although this isn't exactly how mortgage interest is calculated, it still makes the same point...
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