Mortgage APR vs. Interest Rate: What’s the Difference?

One of the things I like most about writing about personal finance topics is getting the chance to learn things I didn’t know previously. I’ve bought three homes over the years while I noted that my lenders provided both an interest rate and an APR, I never asked about the difference between those two numbers.

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Photo by Sergey Zolkin on Unsplash

 

Recently, I had the chance to answer that question for Lending Tree. It made me wish I could go back in time and take a closer look when I bought my mortgage!

Check out my article: Mortgage APR vs. Interest Rate: What’s the Difference?

What’s something you wish you knew before you bought a home?

Understanding the Costs of Your Mortgage

If you’ve ever applied for a mortgage, you probably received either a Good Faith Estimate or a Loan Estimate. If you’re like most of the clients I’ve worked with over the years, you just asked the lender what your monthly payment would be and shoved the Loan Estimate in a drawer.

 

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Image: Scott Webb via Unsplash

But that lengthy and confusing piece of paper is actually pretty important for understanding the real cost of your loan.

 

Lending Tree recently asked me to write a guide to understanding the costs of your mortgage. If you’re in the process of buying a home – or thinking of buying one in the future – give it a read!