The annual percentage rate is always higher than the actual interest rate, because the annual percentage rate takes into consideration all of the costs associated with financing including prepaid items such as property taxes, hazard insurance and mortgage interest lumps them all together against your loan and re-amortizes the figures over the life of the…
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Many of the mortgages being made today contain higher loan to values. These loans contain inherent “risk based pricing” which causes the rates to change. What is loan to value anyway? The loan to value (LTV) is defined as the amount of money you’re borrowing against the value of your the property expressed as a…
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As we round up the fiscal year 2012 and move into 2013, the next 12 months is showing compelling reasons why would-be home buyers are going to be buying more homes. In the beginning of 2012, the consensus was the real estate market was low, even flat in some parts. In summer 2012, purchase business…
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If you are in the market for a mortgage refinance or home purchase, plan to pay more if you are borrowing more than the conforming loan limit. The national conforming loan limit for the best mortgage rates is $417,000 extending through December 31, 2013. If your loan is up to $417,000 or lower, generally you’ll…
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The difference in the interest rate and the annual percentage rate is the spread expressed as a dollar finance over the life of the loan. The aPR is always going to be higher than the mortgage rate because the APR, is a function of the total closing costs express as a dollar percentage over the…
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In the last several years, many homeowners looking to take advantage of a lower monthly mortgage payments took out adjustable-rate mortgages to purchase or refinance their homes. As both mortgage rates and short-term interest rates, remain low it boils down to one financial decision at the end of the day; Keep or refinance your adjustable-rate…
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“Why can’t I get the mortgage rate for my refinance I saw in the news?” This question is asked on a daily basis. When you as a homeowner have a mortgage and are paying a certain percentage of the money you originally borrowed, you’re always going to be paying a little closer attention to those…
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Homeowners refinancing their mortgages will now come to learn the refinance process is taking longer than 30 days. Here’s the scoop: mortgage-backed securities (MBS) continue to be a very lucrative investment vehicle in these economic times. Safe, conservative returns with a fixed income provides an awfully attractive place to park one’s money considering little volatility…
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