When i lok at rates and there is apr, is that what i should go by for lenders?

You need to look at both. The APR is a quick way to compare the total cost of a loan when comparing apples to apples, like a 30-year fixed compared to a 30-year fixed. However, this is also assuming the lender is inputting all of the correct fees up front. The lowest rate is not always the best deal because you need to look at the cost vs. benefit when getting the rate. For instance you may get an interest rate of 4.50% for no points, but someone is advertising a rate of 4.375% for a 1% origination. The 4.375% looks good, but you have to divide the cost to buy down the rate by the amount of monthly savings to see how long it will take before you break even. In most cases it does not make sense. If you are currently working with a loan officer have them go over a few different scenarios with you to see what will best fit your needs. If you have any additional questions you can always reach me at 303-521-7169 or syoung@firstcal.net / Best wishes, Sean

Absolutely not.. APR is the most deceptive number you can look at when comparing loan options. Currently, the lending and disclosure rules are different between brokers and banks.. For brokered loans, every penny the lender is making on your transaction must be disclosed, but for a bank, they are not required to show all the funds they receive for doing your loan.. Apples to apples comparison, you could have a better deal with a broker, but a higher APR than the bank.. It's best you look at the "initial fee's" worksheet.. this will breakdown each charge from the lender and will also show all the credits.. simple accounting is "money in / money out".. the one with the lowest NET fees will be the better deal.. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

I have a great article about shopping for a loan with ARP at http://joemetzler.com/apr.htm - Shopping with just APR can be very misleading, and is unwise unless you fully understand how it works, which almost no one does. APR basically factors costs into the rate. Any good loan officer can provide you with a total cost analysis between interest rate and closing costs that lets you compare better that APR will ever be able to. In MN, SD, and WI - visit www.JoeMetzler.com

Esentially. But a safer way to do it is take the % down you are putting down and subtract the actual amount you will need to bring to the transaction. The remainder is how many fees you are paying. The final step is to subtract out the prepaid/apprasal/credit fees as accurately as possible to know how many additional fees are being charged, what they are for, and if they are too much. Then, compare to other lender. We are a great option!Www.Coloradolenders. com303-578-9202 ask for Robert

APR is a very inaccurate way to compare mortgage loans. If you are looking at an adjustable rate loan don't pay a moments attention to the APR, it assumes the underlying index of the loan will NEVER change for the next 30 years, whichis an absurd assumption but is what the Govt. says has to be disclosed. If you are comparing a loan between a bank and a mortgage broker they can both have the same APR but may have closing costs thousands of dollars apart (hint: the bank will usually have higher closing costs, but not always). The broker might give you a very large credit towards your closing costs but cannot use that credit to reduce the calculation of the APR. A bank is allowed to calculate differently and may have a lower APR and actually charge you higher closing costs.What you have to compare is the simple interest rate on the loan and the NET (after any credits) closing costs on the loan. Ask for a fee worksheet of estimated closing costs. This will include the lenders orgination charge, underwriting fee, credit report, flood cert, appraisal fee title and government fees minus any lender credit (there are certain categories of fees that must be itemized and the lender or broker may or may not offer you a credit against these charges). Generally if you want to go a little higher in rate the higher the credit amount can be. If you want a lower rate there will be less (or no) credit. At the time of application these fees and credit must be estimated, at the time of loan lock they must be locked into (with the exception of some fees from 3rd party providers).It's not only the rate, it's what it costs you to get there and how you count the money!I would be happy to discuss how to compare loans with you in more detail if you would like to give me a call. 970-748-0342

The best way to compare any two loans of the same type is to compare the cost of one offering to the others at the same interest rate. These costs will be disclosed to you in the form of a Good Faith Estimate and can often be done online. Be sure you are comparing a 30 year fixed rate mortgage to another 30 year fixed rate mortgage as the rates on adjustable rate mortgages or fixed rate mortgages with a shorter term will be lower.The APR or Annual Percentage Rate is calculated using a method devised by the government that was designed to provide an index by which you can compare one loan to another, much like the wear rating index for tires or the efficiency rating for a refrigerator. Unfortunately it is only accurate for comparing two or more fixed rate loans for the same term (15 or 30 years). Even then it is only accurate if you make every payment on time and for the full term of the loan.Adjustable rate loans work differently. Since the rate will adjust and no one can know by how much, it is impossible to accurately calculate and APR. The default presumption is that the "Index" will not change over the life of the loan. The Index is the value that will cause the interest rate on that loan to increase or decrease over the life of the loan. This index value is a function of what interest rates will be in the future and the future is unknowable.Just give me a call if you want more information.Jim Crowder (303)817-3308

Not necessarily. APR is the annual cost of borrowing money, expressed as a percentage. The APR includes the interest rate along with other fees associated with the loan. So in reality, the APR for a loan might actually be higher than the loan's interest rate.Compare rates, points and fees if you're shopping around. Ask each lender for a fee sheet so that you can compare "apples-to-apples". The GFE is another document you can review, but it can be confusing to some. A Fee Worksheet is an itemized breakdown of applicable (and optional) fees, and it will show you a clearer picture as to what you can expect to pay to get the loan and what you can expect to pay each month. Keep it simple!!!