Mortgage?

Consumers who are fully aware that their interest rate and Annual Percentage Rate (APR) are different are already ahead of the game. Most think they are interchangeable. Another fact that most don’t realize is that rate locks do not apply to both interest rate and APR. Interest rates change just about every day.

The Truth in Lending Statement was a federally mandated disclosure that mortgage lenders began including in loan documents to identify specifics about the loan that they would just as soon you not know. To create a mutually beneficial playing field for borrower and lender, the document is drafted with vague wording and partial information. The benefit seems to lean more toward the lender.

When it comes to credit, almost none of us are perfect. At one time or another there may be something that was reported to your credit in a derogatory or negative manner. An auto repossession or a charged off credit card account that went unpaid might have been forwarded to a collection agency.

Interest cost is another more flexible calculation of the total amount of interest paid on a mortgage loan. Most times the APR, or Annual Percentage Rate, is used because it is the most convenient. For anyone completing a mortgage term of, say, 30 years, this is ideal. For individuals in the market to stay in a home or a shorter, more prescribed time period, this is not a valid assessment.