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 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.
Thanks,
Bobbi
---------- FOLLOW-UP ----------
QUESTION: So, am I correct on saying whatever the interest rate is, that is what you pay on and not the APR? If so, why do they even mention the APR? And the APR is never the interest you pay on? Thanks....
Answer Good question and many in the industry would like to know the answer as to why its still being done! The only thing I can tell you is this; someone in Washington hadn't a clue about the industry made a decision on something they didn't have a clue about. Gotta love the politician's who make laws on issues they know nothing about!
