As first time homebuyers and a newlywed couple, all of the terms, numbers and percentages that go into a mortgage can become a blur. At vLoan, the Modern Mortgage Company, our mortgage advisors will help you every step of the way. It is important that the both of you understand every aspect of a mortgage before you take the big leap and sign the dotted line for your dream home. vLoan is giving you the run-down on mortgage rates and what they are.
So what are mortgage rates?
A mortgage rate is the cost that you will pay each year to borrow the money for your home. This amount is usually expressed as a percentage and it does not reflect the fees or any other charges that may occur while taking out a mortgage.
Mortgage rate vs. APR
When looking at an APR, you are looking at the bigger picture on what the cost is going to be to borrow the money for your home. The annual percentage rate reflects on the interest rate, mortgage broker fees and any other charges that you may have to pay in order to receive your loan. When looking at both the mortgage rate and the APR, mortgage rates tend to be lower than the APR.
TIP: Make sure to not just look at the APR when trying to decide on which loan to go with for your home. There are other variables that go into making the loan decision, so make sure you look over all of them.
Our average customer saves $3,240 a year* on their mortgage. We want you to be next. Take a look at the current rates on our product pages to help you decide on which loan product could be the best fit for the both of you. If you both have a dream home picked out, go ahead and start the process early with one of our free online rate quotes. We can’t wait to speak with you.
Follow us on Facebook or Twitter to keep up to date with our monthly campaign #HappilyEverHomes. We will be sharing more mortgage advice and news to help educate you about the home buying and refinance process. Don’t do mortgages like your parents did. Do it digitally, with vLoan.
*Savings calculated by comparing previous total monthly housing payment to new total monthly housing payment for no-cash out refinance mortgages for Union Home Mortgage Corp. 2015 and 2016 closed loans with a 30 year term.