APR - Annual Percentage Rate Defined

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Mortgage and Lending with Bay Equity, LLC 770-634-4021 NMLS #206275 GA 25689

APR - Annual Percentage Rate Defined.  Annual Percentage Rate (APR) is probably one of the most asked questions by homebuyers searching for a new mortgage or homeowners that wish to refinance their existing mortgage.

The Annual Percentage Rate (APR) is an effective way to determine the cost of borrower money.  The Annual Percentage Rate (APR) is used not only for mortgages but also car loans, personal loans, and credit cards.

The most important fact to remember, is that your note rate and the annual percentage rate are completely different.  The note rate is the rate that is used to determine your principal and interest payment.  The annual percentage rate should be used for comparison between programs or when comparing the offerings from more than one lender.

 

Here is a great tool for you to use in calculating the Annual Percentage Rate

http://www.endmemo.com/financial/apr.php

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Kathy Sheehan Senior Loan Officer

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770.634.4021

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404.745.8060

 

Bay Equity LLC

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11475 Great Oaks Way, Suite 350, Alpharetta, GA 30002

800.BAY.3703 Bay Equity LLC NMLS ID#76988


 

 

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The opinions and general information in this blog are soley those of Kathy Sheehan.  Specifics regarding an individual case should be discussed in detail with a loan professional.  For a confidential consultation, please feel free to contact me via phone or email.  All terms and conditions are subject to change.

 

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Rainmaker
2,053,682
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Hi Cathy,

Thanks for leaving us that tool.  It is helpful for every credit decision. I saved it to my favorites.

Nov 24, 2013 08:07 PM #1
Rainmaker
647,193
Kathy Sheehan
Bay Equity, LLC 770-634-4021 - Atlanta, GA
Senior Loan Officer

Grant,always happy to help out.

Nov 25, 2013 08:59 AM #2
Ambassador
3,984,538
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

The APR tells more of the story with all the sources of income earned on the loan. It is so confusing to the consumers.

Nov 25, 2013 10:24 AM #3
Rainmaker
1,250,453
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

Kathy:  Great, easily understood explanation of this often misunderstood part of the mortgage process.  As Debbie say correctly ... it is often very confusing to Borrowers.  Your explanation should help them greatly ...

Gene

Nov 25, 2013 10:39 AM #4
Rainmaker
647,193
Kathy Sheehan
Bay Equity, LLC 770-634-4021 - Atlanta, GA
Senior Loan Officer

Debbie, it is the most frequently asked question.

Nov 25, 2013 10:57 AM #5
Rainmaker
647,193
Kathy Sheehan
Bay Equity, LLC 770-634-4021 - Atlanta, GA
Senior Loan Officer

Gene, thanks for the compliment.  I am sure you have answered the same question many times.

Nov 25, 2013 10:57 AM #6
Ambassador
1,654,364
Jennifer Fivelsdal
JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571 - Rhinebeck, NY
Mid Hudson Valley real estate connection

Kathy concise explanation of APR and a very helpful tool to have when the questions comes up.

Nov 27, 2013 09:32 AM #7
Rainmaker
647,193
Kathy Sheehan
Bay Equity, LLC 770-634-4021 - Atlanta, GA
Senior Loan Officer

Happy to help Jennifer!

Nov 27, 2013 11:16 AM #8
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Kathy Sheehan

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