How much more should an APR be than the base mortgage rate?
Written By: admin on September 11, 2009
One Comment
What is a typical spread for the base mortgage rate to APR for a jumbo mortgage?
I am applying for a 30-year fixed jumbo FHA loan and was quotes a mortgage rate of 5% but with an APR of 5.69%. Is that spread typical (i.e. 0.69% more)?
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not that simple I’m worried. APR is an incredibly complex equation to take into account compounded interest and any hidden charges.
The flat rate is the actual interest rate. APR is simply for comparing the overall cost between lenders. It really bears no resemblance to the rate you pay.