Residential Mortgage Application: Your APR

When you are filling out your residential mortgage application, you want to make sure that you understand what your APR on the loan is and how it works. Here are the basics of the APR on the residential mortgage.

APR

"APR" stands for "annual percentage rate." This refers to the amount of interest that you are going to be paying over the course of a year. Ideally, when you are looking for a mortgage, you are going to want to find one with the lowest APR available.

Impact

The APR is going to have a huge impact on you financially over the course of your mortgage. The APR is going to impact your monthly mortgage payment significantly. Even a fraction of a percent increase in your interest rate is going to affect your monthly mortgage payment substantially. In addition to affecting the monthly payment, it is going to affect how much money you pay over the course of the mortgage. You are essentially going to be paying thousands of dollars in interest over the entire period of your mortgage. Therefore, you want to try to get the lowest APR that you can when you are shopping around in the market.

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