What's the difference between the interest rate ona mortgage and the apr on the truth and lending disclosure - truth in lending mortgage
The APR includes not only determines the interest rate on the mortgage (the "note" rate "), but treats all in advance and include the cost of borrowing (indebtedness, costs of materials, closing costs), as if they were of interest ... if the APR is the rate of the note + free over the term of the loan.
This system was developed by the turmoil of the federal government in an attempt to give consumers an idea of the actual cost of bank credit.
Saturday, January 23, 2010
Truth In Lending Mortgage What's The Difference Between The Interest Rate Ona Mortgage And The Apr On The Truth And Lending Disclosure
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The interest rate on your mortgage is the interest rate, you must pay the balance for the duration of the loan.
The APR reflects the cost of borrowing, interest rates expressed. In general, the higher the APR is the interest rate, the less you pay for the financing. This is how the government allows you to compare lenders for financing costs.
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