refinance question - interest rate vs mortgage APR, when are both equal?

[LordSnailz]

We're looking to refi and I've been comparing different quoted rates as well as looking at the mortgage APR.

From what I understand, APR is of what you'll pay over the life of the loan. It factors in any points, origination fees, prepaid interest in addition to the loan, so generally it would be higher than the quoted interest rate.

For a true no cost loan, the APR should match the interest rate, that I understand. But what I don't get is if I pay all closing cost, the APR should be equal to the interest rate as well right? What other cost is there that would be factor into the APR that is not paid upfront?

Ultimately, I'm leaning towards a loan where we pay the closing cost to get the lower interest rate compared to a 'no cost' loan, but at the same time find the one w/ no hidden fees bundled up into the loan.

 

[alkemyst]

Originally posted by: LordSnailz
We're looking to refi and I've been comparing different quoted rates as well as looking at the mortgage APR.

From what I understand, APR is of what you'll pay over the life of the loan. It factors in any points, origination fees, prepaid interest in addition to the loan, so generally it would be higher than the quoted interest rate.

For a true no cost loan, the APR should match the interest rate, that I understand. But what I don't get is if I pay all closing cost, the APR should be equal to the interest rate as well right? What other cost is there that would be factor into the APR that is not paid upfront?

Ultimately, I'm leaning towards a loan where we pay the closing cost to get the lower interest rate compared to a 'no cost' loan, but at the same time find the one w/ no hidden fees bundled up into the loan.

APR is the annual percentage rate, the rate your interest rate compounds to in a year.

The long and short of it is with a loan product you can basically look at the cost of the loan over it's lifetime, any out of pocket costs and then what that payment ends up being each month.

Many just shop payment/rate and get hosed on fees up front.

Almost anyone lending money out there gets the same rate, pushes the same amount of paper, etc. Companies like mine do not work off overage like many brokers. A broker usually gets a cut of all the fees, anything over the posted rate they sell, and sometimes a fee per loan closed.

 

[Chunkee]

Originally posted by: alkemyst

Originally posted by: LordSnailz
We're looking to refi and I've been comparing different quoted rates as well as looking at the mortgage APR.

From what I understand, APR is of what you'll pay over the life of the loan. It factors in any points, origination fees, prepaid interest in addition to the loan, so generally it would be higher than the quoted interest rate.

For a true no cost loan, the APR should match the interest rate, that I understand. But what I don't get is if I pay all closing cost, the APR should be equal to the interest rate as well right? What other cost is there that would be factor into the APR that is not paid upfront?

Ultimately, I'm leaning towards a loan where we pay the closing cost to get the lower interest rate compared to a 'no cost' loan, but at the same time find the one w/ no hidden fees bundled up into the loan.

APR is the annual percentage rate, the rate your interest rate compounds to in a year.

The long and short of it is with a loan product you can basically look at the cost of the loan over it's lifetime, any out of pocket costs and then what that payment ends up being each month.

Many just shop payment/rate and get hosed on fees up front.

Almost anyone lending money out there gets the same rate, pushes the same amount of paper, etc. Companies like mine do not work off overage like many brokers. A broker usually gets a cut of all the fees, anything over the posted rate they sell, and sometimes a fee per loan closed.

what is your best rate right now for fixed 30 year with great credit? We are wanting to re-fi and found that nationwide mortgage is probably the best deal with .500 points at 4.689 apr.

we are ready to go, so if you know of a better plan please share...thanks.

 

[LordSnailz]

Originally posted by: Chunkee

Originally posted by: alkemyst

Originally posted by: LordSnailz
We're looking to refi and I've been comparing different quoted rates as well as looking at the mortgage APR.

From what I understand, APR is of what you'll pay over the life of the loan. It factors in any points, origination fees, prepaid interest in addition to the loan, so generally it would be higher than the quoted interest rate.

For a true no cost loan, the APR should match the interest rate, that I understand. But what I don't get is if I pay all closing cost, the APR should be equal to the interest rate as well right? What other cost is there that would be factor into the APR that is not paid upfront?

Ultimately, I'm leaning towards a loan where we pay the closing cost to get the lower interest rate compared to a 'no cost' loan, but at the same time find the one w/ no hidden fees bundled up into the loan.

APR is the annual percentage rate, the rate your interest rate compounds to in a year.

The long and short of it is with a loan product you can basically look at the cost of the loan over it's lifetime, any out of pocket costs and then what that payment ends up being each month.

Many just shop payment/rate and get hosed on fees up front.

Almost anyone lending money out there gets the same rate, pushes the same amount of paper, etc. Companies like mine do not work off overage like many brokers. A broker usually gets a cut of all the fees, anything over the posted rate they sell, and sometimes a fee per loan closed.

what is your best rate right now for fixed 30 year with great credit? We are wanting to re-fi and found that nationwide mortgage is probably the best deal with .500 points at 4.689 apr.

we are ready to go, so if you know of a better plan please share...thanks.

yup, I would be interested as well ... bump!

 

[alkemyst]

Originally posted by: LordSnailz

Originally posted by: Chunkee

Originally posted by: alkemyst

Originally posted by: LordSnailz
We're looking to refi and I've been comparing different quoted rates as well as looking at the mortgage APR.

From what I understand, APR is of what you'll pay over the life of the loan. It factors in any points, origination fees, prepaid interest in addition to the loan, so generally it would be higher than the quoted interest rate.

For a true no cost loan, the APR should match the interest rate, that I understand. But what I don't get is if I pay all closing cost, the APR should be equal to the interest rate as well right? What other cost is there that would be factor into the APR that is not paid upfront?

Ultimately, I'm leaning towards a loan where we pay the closing cost to get the lower interest rate compared to a 'no cost' loan, but at the same time find the one w/ no hidden fees bundled up into the loan.

APR is the annual percentage rate, the rate your interest rate compounds to in a year.

The long and short of it is with a loan product you can basically look at the cost of the loan over it's lifetime, any out of pocket costs and then what that payment ends up being each month.

Many just shop payment/rate and get hosed on fees up front.

Almost anyone lending money out there gets the same rate, pushes the same amount of paper, etc. Companies like mine do not work off overage like many brokers. A broker usually gets a cut of all the fees, anything over the posted rate they sell, and sometimes a fee per loan closed.

what is your best rate right now for fixed 30 year with great credit? We are wanting to re-fi and found that nationwide mortgage is probably the best deal with .500 points at 4.689 apr.

we are ready to go, so if you know of a better plan please share...thanks.

yup, I would be interested as well ... bump!

It's free to apply. There is no cost.

Great credit is really subjective, once the report is run and the actual story known is the only way to really quote a rate. Also you are looking at no junk fees with us. Many of the low price leaders have a few hundred to thousand of 'document prep' type. Also what you are refinancing matters as well as if it's a rate and term only or cash out.

If anyone wants to talk to someone directly call 800-232-0351 and they will get you to the Account Manager for your state. Make sure you mention me so they know it's a friends and family deal. So far our IS team is leading the way getting this out there and customers coming in 🙂

I did my own loan with them even though I had no discount as I was buying a preexisting home, they still had the best final cost/rate I could find and I have been in the business a long time.

 

[OCGuy]

4.6 with only 1/2 points to the lender total is a good deal. (As long as this includes both origination and any discount points).


All the loans I am working on right now are between 4.375-4.99. Anyone in the fives is either bad credit or getting ripped off by the LO.

 

[BlahBlahYouToo]

hey chris, what's the approximate closing costs on a refi on a $130k co-op in NY?

 

[sjwaste]

I just locked 4.875 w/ a quarter point, USBank. I'm an existing customer and the fees were minimal. Basically, the closing costs are only my state and county tax stamps, appraisal, and title policy reissue. Their cut is $300, which I found very reasonable.

Lenders are slammed right now with refi applications, so rates aren't as low as they could be, but it's still a very good time to do it.

 

[alkemyst]

Originally posted by: sjwaste

Lenders are slammed right now with refi applications, so rates aren't as low as they could be, but it's still a very good time to do it.

Rate shouldn't be affected by that...however, many are slammed. We typically don't do outside business other than our for our parent company. My boss' parents had their refi completed in 7 business days.

I have an email in to get our closing costs.

edit: from our SVP of Secondary

Hi, the good news is we don?t charge any fees unless they are third party.

Appraisal is a 3rd party fee that we charge. If the folks want mortgage payment protection we would pass that $180 fee on as well.

Other than that it?s all title company and recording related charges. Establishing escrows (HOI, Taxes, Flood, MI). Best bet would be to have the person call in and get a GFE. As an FYI - from state to state recording and title fees differ.