Is comparing Annual Percentage Rates (APR) the best way to decide which lender has the lowest mortgage rates?
Yes. The APR method takes fees associated with a mortgage transaction and quantifies them as a percentage. It then adds this percentage to the interest rate you’ll pay on your principal mortgage balance. As a result, an APR allows a consumer to shop various lenders side by side. For example, if lenders A and B are advertising the same rate, yet the APRs are different, you’ll be able to determine that one lender is charging more fees for the loan than the other.
Back to Knowledge Base