AboutBobbi Buehl Expertise Home mortgages is my expertise
Experience Experience in the area 15 years Organizations Mortgage Brokerage Education/Credentials BS in Chemical Engineering, BA in Sales and Marketing. Licensed Loan Officer for 6 years and I have worked as a Loan Officer for 15 years.
Question When you get a loan rate, say 6%, and the APR is 6 1/2%, why is the APR higher? I believe it takes in consideration the closing costs..if this is true, then if I pay all the closing costs up front, then would the interest be 6%?
Thanks
Answer You are correct. But, the APR rate is not the rate you will be getting, the 6% is the actual rate of interest you will be paying on. Also, heads up, if you are paying 6% I hope your credit scrore isn't over 620, because if it is, you should be about a 5.75%!
I hope that answers your question, but if not, email me at bbuehl@amerifirstlend.com and I'll be sure to reply.
