What does APR mean for a home loan?

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Apr 15, 2014
7:56:11pm

Bravescoug

What does APR mean for a home loan?

For example, of you get a loan at 4% with a 5.4 APR, what does the APR mean?

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Bravescoug

Previous username: Brave pug
New username: Mr. Belding
Bio page: Bravescoug
Joined: Oct 18, 2013
Last login: Jan 1, 2017
Total posts: 0 (0 FO)

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Messages

Author

Time

What does APR mean for a home loan?

Bravescoug

4/15/14 7:56pm

It means they charged you a lot of fees, or points

stoils

4/15/14 7:57pm

What do you mean?

Bravescoug

4/15/14 7:58pm

The costs of the loan (origination, YSP, etc. are included).

BluePete

4/15/14 7:57pm

"Pretend" I'm dumb. Can you explain this again.

Bravescoug

4/15/14 7:58pm

It's the real interest rate you're paying after all the fees are rolled in.

BYUFBDAD

4/15/14 7:59pm

RE: "Pretend" I'm dumb. Can you explain this again.

BluePete

4/15/14 7:59pm

That's a ton of closing costs. APR combines the interest and the fees

MantiCoug

4/15/14 8:01pm

Closing costs are only 1.75% of loan

Bravescoug

4/15/14 8:07pm

Is it a short term loan? It can't be a 30 year with what you've described.

MantiCoug

4/15/14 8:10pm

Yeah, I didn't think about PMI. That could bring the APR up.

MantiCoug

4/15/14 8:15pm

One more thing: The APR takes the interest you'd pay over the life of the

MantiCoug

4/15/14 8:07pm

Does mortgage insurance affect APR?

Bravescoug

4/15/14 8:08pm

Yes

BYUFBDAD

4/15/14 8:10pm

It means you're getting screwed

WDaddy

4/15/14 8:32pm

It means RUN!!!! run Jon run!

Dbl Nickel

4/15/14 9:56pm

It's an FHA loan and we have to pay mortgage insurane

Bravescoug

4/15/14 10:01pm

Downside to FHA loans is you can now never drop PMI during the loan life.

BYUFBDAD

4/15/14 10:39pm

RE: Downside to FHA loans is you can now never drop PMI during the loan life.

Bravescoug

4/15/14 10:45pm

Call other lenders and brokers and tell them you want to do a non-FHA loan. See

WDaddy

4/16/14 4:46am

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