Understanding the Annual Percentage Rate (APR) and What It Really Means In Real Estate
Posted by Goody on 06/4/08 in Finance
Sternberg brings a “buyers first” view and expertise after 30+ years as a real estate investor. This article is a must read for any one seeking to understand the APR and how it relates to real estate.
The annual percentage rate (APR) gives you the yearly cost of a mortgage in the form of a percentage. The rate calculations include interest, mortgage insurance, and the origination fee (points).
The APR has two main purposes.
1. it allows borrowers to compare loan programs from different lenders so they can see which program is the cheapest.
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