| How to interpret mtg interest rates on certain website |
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soybean
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| How to interpret mtg interest rates on certain website |
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If you look at the Rate and APR columns, you see that the top row shows a Rate > APR while the second row shows Rate < APR. Can you explain this?
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Wed Aug 24, 2011 7:52 pm |
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coaster
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Doesn't make sense to me, either. Only explanation I can come up with off the top is a typo.
Can you go back to the site tomorrow; clear and refresh your cache, and see if it's different?
Anybody else have an explanation?
~Tim~
Eye Candy : Why Whimsy
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Wed Aug 24, 2011 9:03 pm |
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soybean
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Actually, I view their website often; it's credit union to which I belong. And, although the figures change from time to time, the seemingly inconsistent figures for Rate and APR has persisted.
I just made a phone call to this lender and the person with whom I spoke did not give a satisfactory answer, in my opinion. I think she just did not have a clear understanding of the rates on that table. She did say that they pay some closing costs and this has a bearing on the rates shown for the first 60 months.
Her comments really didn't make much sense to me. I'm hoping to re-finance my mortgage with them. If I apply, I'll raise the question again. Perhaps I'll be talking to someone who can give a better explanation.
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Wed Aug 24, 2011 9:52 pm |
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jfurnish
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quote:
Originally posted by soybean
Actually, I view their website often; it's credit union to which I belong. And, although the figures change from time to time, the seemingly inconsistent figures for Rate and APR has persisted.
I just made a phone call to this lender and the person with whom I spoke did not give a satisfactory answer, in my opinion. I think she just did not have a clear understanding of the rates on that table. She did say that they pay some closing costs and this has a bearing on the rates shown for the first 60 months.
Her comments really didn't make much sense to me. I'm hoping to re-finance my mortgage with them. If I apply, I'll raise the question again. Perhaps I'll be talking to someone who can give a better explanation.
try this link it should do a better job of explaining the difference for you.
http://www.lendingtree.com/mortgage-loans/advice/comparing-mortgage-loans/interest-rate-vs-apr/
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Thu Aug 25, 2011 12:46 am |
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coaster
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Uh, no sorry, the article at the end of that link just explains the difference between interest rate and APR. But, as I understand soybean's question, it's what's the reason for the INVERSION between the near-term and far-term. The APR should always be higher than the interest rate, no? Though I qualify that by saying I don't have any experience with ARMS; there may be something in the way ARM numbers are derived that I'm missing.
The article does say: quote:
The APR is much more useful for fixed-rate mortgages than for adjustable-rate loans.
... and maybe that's all there really is to the answer. 
~Tim~
Eye Candy : Why Whimsy
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Thu Aug 25, 2011 6:25 am |
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