05
Feb
By Todd Grey
Home Buyer Tips, ,

What Homebuyers Need to Know About Mortgage Interest Rates and APR

When applying for a mortgage, borrowers are often presented with several important numbers that determine the true cost of the loan. Two of the most discussed figures are the mortgage interest rate and the annual percentage rate, also known as APR. While these terms are closely related, they are not the same. Understanding the distinction between interest rate and APR is essential for comparing loan offers accurately and making informed financial decisions. What a Mortgage Interest Rate RepresentsThe mortgage interest rate is the percentage a lender charges for borrowing money. This rate is applied directly to the loan principal and…
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07
Nov
By Todd Grey
Mortgage Tips, ,

When and How to Secure a Favorable Mortgage Rate Lock

Interest rates can fluctuate from one week to the next, and that can have a major impact on your monthly payment and overall loan cost. A mortgage rate lock gives you the ability to secure your interest rate for a set period of time, protecting you from unexpected increases while your loan is being finalized. Understanding how rate locks work can help you choose the right time and terms for your situation. What a Rate Lock MeansA rate lock is an agreement between you and your lender that guarantees a specific interest rate for a certain number of days, usually…
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10
Apr
By Todd Grey
Mortgage Tips, ,

Why Your Mortgage Rate Isn’t the Same as the One Advertised Online

Shopping for a mortgage can be exciting, but it can also be confusing when you see a low advertised rate online, only to be quoted a different rate when you apply. While this can be frustrating, there are several reasons why your actual mortgage rate may differ from what you initially expected. The good news is that understanding these factors can help you make informed decisions and secure the best possible rate for your financial situation. Personal Financial Profile Matters Advertised mortgage rates are typically based on ideal borrower profiles—those with excellent credit, low debt-to-income ratios, and substantial down payments.…
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14
Mar
By Todd Grey
Home Mortgage Tips, ,

APR vs. Interest Rates

If you're gearing up to dive into the world of real estate, there are a few key terms you'll want to wrap your head around before taking the plunge. Today, we're demystifying APR and interest rate, two crucial concepts that can impact your home-buying journey. Don't worry, I'll break it down in simple terms so you can confidently navigate the process like a pro. Interest Rate: Let's start with the basics. The interest rate is the percentage charged by a lender for borrowing money to buy your home. It's essentially the cost of borrowing the principal amount. When you're comparing…
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19
Sep
By Todd Grey
Mortgage, ,

The Impact of Interest Rate Changes on Your Mortgage Payment Over Time

When it comes to mortgages, interest rates play a crucial role in determining your monthly payments and the total cost of your loan. While fixed-rate mortgages offer stable payments, adjustable-rate mortgages (ARMs) can fluctuate with market conditions, leading to significant variations in your financial obligations over time. Understanding how interest rate changes impact your mortgage can help you better prepare for the future. Fixed-Rate vs. Adjustable-Rate Mortgages Fixed-rate mortgages offer a consistent interest rate throughout the life of the loan. This stability means your monthly payment remains unchanged, providing predictability and ease of budgeting. However, the trade-off is that fixed-rate…
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