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what is the difference between the mortgage rate and APR by michael caron from stoughton, Massachusetts. Feb 12th 2010 Reply

Leo Harvey (LHARVEY)
#6 ranked lender in Pennsylvania - 144 contributions

The mortgage rate or "note rate" is the simple interest rate charged to borrow the money. The APR is the annual rate of interest including the finance costs incurred to borrower the money. These costs would include lender or broker fees and most other fees you paid to obtain the loan. The APR legally has to be disclosed to you on any mortgage loan application within 3 business days and is a more accurate means of comparing loans between lenders.

Feb 13th 2010
- - (Voted.Best.Rates.and.Service)
#12 ranked lender in New York - 374 contributions

The mortgage rate is the rate of interest paid on the mortgage loan. Expressed as a percentage.The APR formula combines a loan's interest costs with other fees charged by a lender over the life of the loan, and expresses them as a yearly percentage. The APR is therefore a better reflection of the true cost of borrowing than interest rates alone and is a good benchmark for comparing loan offers.

Feb 12th 2010
#223 ranked lender in California - 131 contributions

(Interest Rate) An interest rate is a fee that a person pays to borrow money. Any time you borrow money from a lender you pay a interest rate and some loans are interest only --- (APR )The annual percentage rate is the yearly interest rate that is charged on the money you borrow it usually includes other fees associated with the loan if they were not paid for up front.--it's misleading to compare loans by looking only at the interest rate . A better means of comparison is the(APR) as it is a better reflection of the true cost of borrowing.

Feb 12th 2010
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