Reason(s) Not to Go With the Cheapest Loan/Lender By definition, all real estate is unique. Money isn’t. (In economists’ lingo, money — and other commodities like aluminum, corn, and lumber — are what’s called “fungible”). So, is there a reason for prospective home Buyers (and mortgage borrowers) not to simply get the cheapest loan they can...Read More
FHA Rates — and Especially Fees(!) — Soar Higher Prospective borrowers obviously care about the face rate on their mortgage, but what they should really care about is what’s called the “A.P.R.,” or Annual Percentage Rate. It’s the latter number that captures the various fees that the lender is charging, and reflects the true cost...Read More
Getting a Mortgage? Focus on the A.P.R., Not the Interest Rate One of the least remarked — but most important — numbers in residential real estate is the difference between a loan’s “face” interest rate, and what’s called the “A.P.R.,” or annual percentage rate. The latter captures the interest rate plus all the costs and...Read More
Q: When is a 3.75% FHA loan a better deal than a 3.5% FHA loan? A: When the 3.75% loan is (a lot) cheaper to get. Consumers shopping for a mortgage tend to focus only on the face rate of the mortgage. That’s a mistake, because the total cost of the loan breaks down into two...Read More
