On a mortgage is it better to go with lower intrest rate or apr?
Here are the numbers I am using google mortgage comparison and don’t know much about how apr works but for a 0,000 home Honest Credit 5%down (000) 000 income 700monthly debt in California San Diego County 30 year fixed rate.
These numbers are just an example but Lender one which would be
National Bank of City of Kansas gives me 4.750interest 5.26 apr
1498 monthly payment 5207 Lender Fees
Lender2.
North American Savings Bank 4.75 Interest 5.277 apr
1498 monthly payments 5550lender fees
Lender3.
Quicken Loans 5.0 interest 5.295 apr
1427 monthly 8755lender fees
In my opinion Lender 1 is the best option. Couple bucks higher in monthly payment than lender 3 but least lender fees. If lender 1 is in fact the best deal can someone clarify to me why. Or is one of the other lenders better?
Like I said I do not know much so I am just using
https://www.google.com/comparisonads/mortgages
but for down payment I have tried different things and I just place the lowest possible on the calculator 5% which would be a FHA Loan I believe? I but will be looking to use a VA Loan which I don’t know how that would effect anything although I am sure it will. What should I be looking for in a VA Loan and I am not sure how APR and Interest rate effect anything in the loan and thats what I need help with.
Any accurate information is excellent information so thanks in advance.
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Tags: american savings bank, california san diego, different things, FHA loan, fixed rate, google, interest rate, lender fees, lenders, Loans, mortgage comparison, mortgage comparison, mortgages, national bank, north american savings bank, san diego county, thanks in advanceTags: american savings bank, california san diego, different things, FHA loan, fixed rate, google, interest rate, lender fees, lenders, Loans, mortgage comparison, mortgages, national bank, north american savings bank, san diego county, thanks in advance
Why is Lender 3’s payment lower, if the interest rate is higher? It’s impossible to tell which is the best deal without more information.
What is the loan amount?
What type of loan is it – FHA, conventional, VA, etc?
What are the fees in the 800 section of the Excellent Faith Estimate? These are the fees that the lender really gets and can control – everything else is third party fees or prepaid expenses and should be standard across the board.
Right now, I just can’t tell why lender 3’s deal has such a different payment, when the rates are higher. Is it a different loan type? lower loan amount?
Edited… I see, these quotes are just from running numbers on online calculators, right? What you need to do is call these places and get a excellent faith estimate from each, so you can see exactly what they are charging and compare both deals – "apples to apples". Until you have their list of charges in front of you, there is no way to tell which one has the best deal.