APR is a good way to determine which mortgage to go with but you need more information to make a decision as to what is best for you. This is due to the fact that it is a matter of personal preferance. You need to separate and compare the actual interest rate you will be given and the closing costs you will incur from the onset.
Often times buyers will opt to pay more closing costs up front if it gets them a better rate because this will save them money in the long haul. Some banks even will lower the interest rate if you are willing to pay points (a point is 1% of the loan amount) up front. This can be attractive to purchaser who plan on owning the property for a long, long period of time.
If the purchaser has little money saved they may prefer to have lower closing costs from the get go and even though it would cost more in the long run they do not mind. This is also true if the purchaser is planning on not staying long term.
The APR is a quick reference vehicle, but it would greatly benefit you to have all the details so you can compare and determine what is best for you. Good luck!
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
The only fees that vary from bank to bank, from mortgage broker to mortgage broker are lender/origination fees and the rate. All the title fees and taxes and such are going to be the same given that you go with the same title company.
So you're better off comparing these fees ( lender fee, admin fee, credit report fee, origination fee, processing fee) and the rate.
In a short, not so boring answer: When comparing mortgages it is important to compare APR's so thats a great start. This number is going to have a big impact on your monthly budget. However it is also important to look at the individual fees that each bank is charging you: ie: points, origination and application fees and so on. There are a lot of fees that come along with a mortgage and cannot be avoided but it is important to compare one banks fees with the other , I promise there will be some differences. If you have any other questions you can contact me directly via email firstname.lastname@example.org
well yes that is the start but depending on your actual credit approval and the property approval each bank's
underwriting department has different criteria. so you should start with the lowest rate you can find with a bank and go for it. Have you found a property yet? if you need any help please contact me directly