Going by the NMLS study guide:
"If an ad states a rate of finance charge, it must state the rate as an "annual percentage rate," using that term or the abbreviation "APR." The primary lending rate that may be advertised is the APR. If a component of the finance charge is simple interest, the interest rate may be included, but the APR must be displayed more conspicuously. Therefore, an ad for mortgage credit may state 4.675% as the contract rate of interest together with a 5.25% APR (which reflects insurance, discounts, points, MIP and other charges, as well as interest)."
Overall , I think the new laws are good in that they help protect the borrower. I am hesitant to give exact interest rates quotes in this forum because of the APR disclosure requirement & the time involved to generate the APR when we are all so busy. Please note, all my clients receive their APR whenever I quote a rate.
Now, all this raises another question for Ivonne: is the 5.25% rate your actual interest rate, or your APR? If it's the APR, that changes everything.
All the best,
Roswell Moore, CMPS
Certified Mortgage Planner
We are a Direct Lender, Mortgage Bank where we originate, process, underwrite and fund FHA, 203k, VA, USDA, Jumbo, Conventional, loans to Canadians & other Foreign Nationals, on time. NMLS ID 263779 | AZ BK 0903725