10 Gotcha’s When Getting a Mortgage Part 6 >

6.  Interest rate and annual percentage rate for certain mortgage.  

·      A point allows comparing the loan costs of a home loan while continuing to have other home loans available on the market.  APR stands for Annual Percentage Rate. APR is figured by adding the loan's fees, interest rate and points, then it's divided by the term of the loan. Do the math, and watch out! A loan with high points but low interest rates can cost you more; while a home loan with a high interest rate and low points could save you thousands.

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