Tag Mortgage Interest Rate

Tag Mortgage Interest Rate

Mortgage Interest Rate Weekly Update May 23, 2016

John Thomas May 23, 2016 Tags: , , , ,
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Mortgage Interest Rate Weekly Update May 23 2016

Mortgage Interest Rate weekly update for the Week of May 23, 2016 by John R. Thomas with Primary Residential Mortgage, Inc. in Newark, Delaware. John Thomas is the Branch Manager, a Loan Officer and the author of the best selling book, Your Guide to Buying Your First Home in Delaware.  Call 302-703-0727 for a Rate Quote or Apply Online for Rate Quote

Mortgage Interest Rates moved higher last week as mortgage bonds sold off as Federal Reserve announced that are looking to hike the Feds Funds Rate in June 2016.  If you look at the mortgage bond chart below you can see the sell off in bonds last week.  Bonds were able to find support at the 100 day moving average and may be ready to make a move higher which would move interest rates lower.  Therefore we are recommending FLOATING Your mortgage rate to start the week. Keep Reading...

Interest Rate vs APR

John Thomas January 7, 2007 Tags: , ,
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Interest Rate vs APR

You are most likely to encounter low mortgage interest rates and low annual percentage rates (A.P.R.) on television commercials or newspaper ads as lenders vie for the attention of potential borrowers looking for the lowest mortgage rates.  This is just a tactic for them to get you to call so they can explain why you don’t qualify for the advertised mortgage interest rate and proceed to sell you on a higher interest rate with higher fees.  So remember the old adage “Buyer Beware”.

A.P.R. was created to provide a way for borrowers to account for costs associated with the mortgage loan. This sounds good because it may not be very easy to choose between a mortgage loan with a lower mortgage interest rate and higher fees or a mortgage loan at a higher mortgage interest rate with low fees. Although APR is supposed to be a shopping tool, its an inaccurate tool at best. While it’s designed to make it easier to compare mortgage loans, it’s sometimes confusing because the A.P.R. includes some, but not all, of the various fees and mortgage insurance premiums that accompany a mortgage loan. And since the federal law that requires mortgage lenders to disclose the A.P.R. does not clearly define what goes into the calculation at the time of this article, A.P.R.s can vary from mortgage lender to mortgage lender and from mortgage loan to mortgage loan. Keep Reading...