Why does a mortgage loan have two numbers associated with it (ex: 2.99% / 3.29% APR)? Which number is more important to me as the borrower?
Answers | 2
In your example, the 2.99% would represent the "Interest Rate" while the 3.29% represents the "Annual Percentage Rate". It's not really a question of which number is "more important" but it's about understanding what each number represents and how that influences your decision on what mortgage is right for you. The interest rate is the annual cost of the loan (what you borrowed) that gets paid to the lender as profit for lending you the money. The annual percentage rate is the same thing...the annual cost of the loan...except this percentage also includes all of the fees & charges that get paid as part of the loan process & closing.
Hope that helps!
Hope these details help, if not, feel free to contact me through my profile, I write loans nationally, and use lender credits to cover closing costs for my borrowers when appropriate to their individual situations. Thanks, Ted