10 mortgage facts you may be wrong about
Posted by The Cascade Team Real Estate on
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Misconception No. 1: Your interest rate reflects the true cost of your mortgage.
Your annual percentage rate (APR) is actually the figure that represents the true cost of your mortgage. It is inclusive of your interest rate, points, mortgage insurance (when applicable) and other fees, including origination and underwriting fees. It does not include the cost of your homeowners insurance policy. The APR is typically higher than your interest rate because it incorporates the rate and the fees. In fact, when shopping for a mortgage, it is best to compare loans based on APR instead of the interest rate because it gives a better sense of the total cost over the life of the loan.
Misconception No. 2: Mortgage rates are only…
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