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Mortgage Professor about annual percentage rate: | |||||||||||||||||||||||
Annual Percentage Rate Below Interest Rate on ARM?
May 5, 2003 "I?m considering a 3/1 ARM and am confused about the APR on this loan. I thought that when there were lender fees, the APR would be above the interest rate. But this 3 /1 ARM has lender fees, yet the APR is below the interest rate. Is this lender making a mistake ... more... Annual Percentage Rate Below Interest Rate? November 5, 2001 "In checking advertisements by mortgage lenders, several showed APRs on fixed-rate mortgages that were lower than the interest rate. Is that possible??? In principle, it is possible and some lenders do it. But in many cases, the computer ... more... |
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annual percentage rate related definitions |
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Annual percentage rate APR
Annual percentage rate (A.P.R.) Is a interest rate reflecting the cost of a mortgage as a yearly rate. This rate is likely to be higher than the stated note rate or advertised rate on the mortgage, because it takes into account ... more... Regulation Z Regulation Z, Reg Z A federal regulation requiring creditors to provide full disclosure of the terms of a loan including the terms of the loan and the annual percentage rate (APR). APR is a interest rate reflecting the cost of a mortgage as a yearly rate. This rate ... more... |
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