Comparing Mortgage Interest Rates in California
If you’re thinking about making a large purchase such as a home, the first thing to do is compare rates. As if that wasn’t enough, sometimes mortgage loan rates can be a bit daunting. One of the most confusing aspects of comparing California mortgage rates is understanding the difference between an advertised interest rate and the APR, or annual percentage rate. Lenders will often show both of these numbers when advertising loans, yet they are usually two different numbers. So, what do they mean?
Use APR to Determine Best Rate
The APR is the actual interest rate you will pay on a mortgage loan, including fees. Looking at the actual APR makes it easier to compare rates that do not have fees with rates that may include fees or points. Just keep in mind that the annual percentage rate is likely to be different than the advertised mortgage interest rate because of the additional fees.
What an APR Means
Remember that securing a mortgage loan with a low APR will make your home loan much more affordable since you’ll pay less in interest over the life of your loan. The amount of interest you’ll pay is just as important as the price of your mortgage. California Banking Rates can assist you in comparing mortgage interest rates to help you locate the lowest one near you.