• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Sonoma County Mortgages

Contact Us About Mortgage Financing

All financing provided by New American Funding

(707) 217-4000 | Prequalify Now

Search Sonoma County Mortgages

  • Home
  • Purchase
    • How Much Down Payment To Buy A Home?
    • How Much Income You Need To Buy A Home
    • How Much Should I Save For Buying A Home?
      • How Rates Affect Payment
    • No PMI Mortgages
    • FHA Loans
    • Sonoma County Disaster Loans
    • Jumbo Loans
  • Refinance
    • Mortgage Rates
    • Does It Make Sense To Refinance?
      • Get Your Refi Paperwork In Order
    • How To Pay Off Your Loan Faster
    • How To Remove PMI
    • How Lenders Price & Quote Loans
  • Loan Programs
  • Payment Calculator
    • Mortgage Affordability Calculator
  • Blog
  • Videos
  • About SCM
  • About Scott Sheldon

Primary Sidebar

Sonoma County Mortgages is a part of New American Funding

New American Funding - NMLS #6606

Get Your Latest Rate Quote Now!

Lowest APR or Lowest Mortgage Rate?

October 5, 2011 by Scott Sheldon

Share on Facebook Share on Twitter Share on Pinterest Share on LinkedIn Share on Email

People purchasing and refinancing homes always are asking the question is it best to get the lowest APR or the lowest interest rate and what’s the difference?

You need to make sure you are actually comparing apples to apples. If you are refinancing a home or purchasing a home you’re going to receive Truth In Lending Statement. On this Truth In Lending Statement there is going to be an annual percentage rate otherwise known as “APR”.

The APR is computed by taking your interest rate and your closing costs adding them together and then re-amortizing them over 30 years ( or the term of the loan). Because of this, the APR is always higher than the interest rate.

Look at the lowest APR or the lowest mortgage rate?

You need to be looking at the lowest mortgage rate. The lowest APR is higher than note rate, so why would you ever look at the lowest APR?

Here are the things you need to make sure to pay attention to when getting a mortgage:

1. The interest rate otherwise known as the note rate

2. The loan amount

3. Closing costs associated with financing

4. Total house payment

If you focus on these four things you will be much better off in terms of understanding your true costs of the mortgage then trying to wrap your head the annual percentage rate. The APR is nothing more than a government mandated disclosure mortgage lenders are required to provide consumers.

Don’t worry about the annual percentage rate, focus on the lowest possible interest rate you can attain.

Lenders can’t readily quote APR’s as they can available rates. The mortgage loan you’re going to take out does not show the note rate with an APR, it shows a note rate which is the interest rate associated with the money you are borrowing. The Mortgage Rate is the true cost of the mortgage over time.

Find the lowest mortgage rate by submitting a request for a mortgage rate quote.

Remember when you’re taking out a mortgage loan you are paying closing costs, paying an interest rate and you have a specific loan amount and of course you have a total house payment, those should be “weigh in” factors in your decision-making. Call us today to discuss mechanics behind the lowest APR or the lowest mortgage rate.

 

 

 

 

 

 

Related Mortgage Advice from Scott Sheldon

  • Mortgage Rates Improve On Jobs Report

    Mortgages rates across the board improved today on the news of the unemployment rate falling…

  • Why APR is Higher Than The Interest Rate

    The annual percentage rate is always higher than the actual interest rate, because the annual…

  • Fed Minutes: Mortgage Rates React

    The Federal Reserve's minutes of the last meeting came out yesterday and it was revealed…

  • 4% Mortgage Rate, Not Today

    The media has been going haywire talking about the great 4% mortgage rate. While rates…

Filed Under: Interest Rates, Mortgage Shopping, Mortgage Tips & Advice

Get Sonoma County Mortgages News and Updates in Your Inbox

Footer

SCM on Facebook

SonomaCountyMortgages.com

Connect on Facebook

SCM On Instagram

Follow Sonoma County Mortgages on Instagram

Follow on Instagram

SCM on Zillow

Zillow Reviews for Scott Sheldon, New American Funding

See Reviews on Zillow

Location & Contact

Sonoma County Mortgages and New American Funding are an Equal Opportunity Housing Lender

Scott Sheldon, Senior Loan Officer
NMLS ID# 287389
2455 Bennett Valley Road C107
Santa Rosa, CA 95405
1-707-217-4000
View SCM Map | Email Us!

Map of Sonoma County Mortgages New American Financing Office

View Map on Google

Copyright 2010–2023 SonomaCountyMortgages.com · About Us · Sonoma County Loans · Privacy Policy · Terms Of Use · Legal · Site Map

NMLS Consumer Access © New American Funding. All rights Reserved. NMLS ID#6606.
Corporate Office 14511 Myford Road, Suite 100, Tustin, CA 92780. We at New American Funding take great pride in our customer service and make it our number one priority. We encourage you to contact us for complaint resolution or any post-closing questions you may have regarding the servicing of your loan. We strive to have your experience with New American Funding a stellar one. In the rare case that our service did not meet your expectations, please call our customer care hotline at 1-800- 450-2010, ext. 7100 or you may contact us by email customerservice@nafinc.com. Please leave a detailed message and we will follow up with you no later than the end of the next business day. If you are using a screen reader or other auxiliary aid and are having problems using this website, please call 800-450-2010 Ext. 7100 for assistance.

State Licensing (Opens in New Window) | Privacy (Opens in New Window)
Terms of Use (Opens in New Window) | Electronic Consent Agreement (Opens in New Window)
Opens in new window Opens an external site Opens an external site in a new window