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
From (Big) Premium to Discount Three years ago — give or take — there was a HUGE premium for a jumbo mortgage (over $417k in most markets) relative to a conforming one. As I recall, the spread was something like 150 basis points. Translation: when conforming rates were 4%, jumbo’s were at 5.5% — assuming...Read More
One Size, er, Rate Doesn’t Fit AllOne of the more noteworthy features of today’s mortgage market, besides greater volatility and generally declining rates, is the wide range in quoted interest rates. For sterling credit risks — credit scores in the high seven hundred’s or above, plenty of existing home equity (or a fat down payment,...Read More
