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Annual Percentage Rate (APR)

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The cost to borrow money expressed as a yearly percentage, the APR helps you compare loan prices.
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APR — a basic outline

Many things can affect the cost of a loan. For mortgage loans, the annual percentage rate typically includes the interest rate plus other charges or fees, such as mortgage insurance, discount points, and origination fees.

  • Interest rate. Cost you pay to a lender for borrowing funds. Expressed as a percentage of the loan amount.
  • Origination charges. Amount that includes all charges (other than discount points) the lender receives for originating the loan, including miscellaneous fees like prepaid interest.
  • Discount points. What a buyer or seller pays at closing to reduce the interest rate on the mortgage. Ask your mortgage consultant for more information about discount points.
  • Mortgage insurance. Usually required if you put less than 20% down.

How mortgage insurance works

What is APR?

Video - What is APR?

We break down the components that make up the annual percentage rate.

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Choosing the right lender

The mortgage lender you choose is just as important as a low APR. We're here for you with years of experience and a full range of banking services. Plus, you get ongoing support because we continue to service most of the loans we close.

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