#shorts Understanding Annual Percentage Rate, or APR, for your mortgage! #shorts #realestateexcellence
"Welcome to our video on understanding Annual Percentage Rate, or APR, for your mortgage.
When you're shopping for a mortgage, it's important to understand the APR. This number is a measure of the cost of the loan, including the interest rate and any additional fees, expressed as a percentage.
APR is different from the interest rate, which only takes into account the interest charged on the loan. APR also includes any origination fees, discount points, or other charges that may be included in the loan.
So, why is APR important? It allows you to compare the costs of different mortgages, even if they have different interest rates. For example, a mortgage with a lower interest rate but higher fees will have a higher APR than a mortgage with a higher interest rate but lower fees.
When comparing mortgages, it's important to look at both the interest rate and the APR to get a true understanding of the cost of the loan.
It's also important to note that APR may vary depending on the type of loan, such as a fixed-rate or adjustable-rate mortgage, and the length of the loan term.
In summary, APR is a measure of the cost of a mortgage, including the interest rate and any additional fees. It's important to consider both the interest rate and the APR when shopping for a mortgage to get a true understanding of the cost of the loan."
Narrator: "Thank you for watching. We hope this video has helped you understand APR and how it can impact your mortgage. Be sure to check out our other videos for more information on personal finance and mortgages."
