Comments on: What Does Your Mortgage APR Indicate?

By: Mortgage Refinancing Reviewed

Mortgage Refinancing Reviewed — Tue, 09 Feb 2010 22:23:12 +0000

unfortunately there are to many desperate people out there. The situation for these people with poor credit or financial instability is grim. They will take what they get which is usually outrageous. We need to tighten the leash and create more standardized lending practices! .-= Mortgage Refinancing Reviewed´s last blog ..Bad Credit, Where Do I Go From Here? =-.

By: Jason

Jason — Sat, 05 Dec 2009 15:40:33 +0000

HaHa – thanks guys. Yeah, I agree, most people are really only concerned about the payment and rate. I thought it was an informative post – I wonder how many people wonder what an APR is, but never really ask.
.-= Jason´s last blog ..Would You Rather Be Filthy Rich or Extremely Poor? =-.

By: Jason @ One Money Design

Jason @ One Money Design — Sat, 05 Dec 2009 01:24:56 +0000

Jason, informative guest post here. I have to admit, I'm in the camp Kevin describes. I would typically ask for closing costs from three lenders and compare, but nevery really took into consideration the APR. .-= Jason @ One Money Design´s last blog ..Top 10 Christmas Gift Picks for Wise Personal Money Management =-.

By: Kevin@OutOfYourRut

Kevin@OutOfYourRut — Wed, 02 Dec 2009 18:17:15 +0000

Umpteen years in the mortgage business, and not one person in ten asked about APR (or even seemed to care when it was explained).

It’s a good metric for comparison sake, but most people want to know only three things:

1) What’s my rate?
2) What’s my monthly payment?
3) How much are the closing costs?

Number 3 was optional; if the seller was paying the closing costs, there wasn’t much interest in that either.

APR is mostly a regulatory requirement, and I think most people ignore it out of fear of what it doesn’t say (the three questions above, for example). It’s a bit of a foreign language to most people I’m afraid.
.-= Kevin@OutOfYourRut´s last blog ..Ten Common Sense Ways to Reduce Our Identity Footprint =-.