What is the difference between a mortgage APR and Interest Rate?
Friday, May 8th, 2009Olivia asked:
My mortgage interest rate is 6.875% and the APR is 7.504% Does the APR of 7.504% sound right if the interest rate is 6.875% ? My mom said that the 2 numbers should be closer together than that. Also, my mortgage banker never even mentioned an APR, and since we are 1st time home buyer’s, we were unaware of it. We only knew about the Interest Rate. Thanks for the help.
Cody
My mortgage interest rate is 6.875% and the APR is 7.504% Does the APR of 7.504% sound right if the interest rate is 6.875% ? My mom said that the 2 numbers should be closer together than that. Also, my mortgage banker never even mentioned an APR, and since we are 1st time home buyer’s, we were unaware of it. We only knew about the Interest Rate. Thanks for the help.
Cody
