Lower lender fees vs. lower interest rate
I am getting a lot of different rates from lenders and am not sure how to view them. Those with lower interest rates have higher lender fees (by about $1000...6.25% vs. 6.37%). Is it better to go with the lower interest fees or the lower lender fees? by tammyquint9966 from Anchorage, Alaska. Jan 12th 2011
Joseph Hendizadeh (josephh)
#343 ranked lender in California - 29 contributions
In order to determine who is giving you the best deal you should compare the A.P.R., which is the annual percentage rate. This way you will be able to differentiate between the cost of the loan and the rates you are being quoted. Good Luck...
Ulysses Fletcher (ufletcher8141)
#26 ranked lender in Georgia - 245 contributions
It is better to go with the low interest fees.Give me a call and let me see what i can do for you.Ulysses Fletcher Mortgage ServicesCell phone:(404) 4212-4783
Dan Paladin (dpaladin)
#356 ranked lender in California - 792 contributions
Tammy, great question...in my experience when I have compared this scenario believe it or not the slightly higher rate turns out better as the lender pays more of your fees...though keep in mind all scenarios are unique. It is a matter of looking at the numbers for the benefit. Feel free to contact me and I can provide a no obligation loan comparison for your specific circumstances.."Dan The Loanman"877-369-4319
Rudi Hofmann (CaPortfolioLoans)
#281 ranked lender in California - 380 contributions
Your payment is computed on the interest rate, not the APR. ... It's better to go with the lowest interest rate unless you do not intend to live there for more than three years. ... And, if you only plan on living there for 3 to 5 years, financially, you would be better off continuing to rent. .... Happy funding, Rudi
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