When it comes to determining your actual mortgage cost it’s all about the APR.
At Savings Bank of Walpole, we know that getting a mortgage is a big deal. That’s why we’re here to answer your mortgage questions – and help make the mortgage process go as smoothly as possible. We often get questions about what an annual percentage rate (APR) is and how it impacts your mortgage payments.
APR – what is it?
APR or Annual Percentage Rate, reflects the true cost of borrowing. A mortgage APR includes the interest rate, points and fees charged by the lender. It’s not the same thing as your interest rate and the APR is higher than the interest rate because it encompasses all these loan costs.
Buying mortgage points to lower the APR
In addition to shopping around for a low APR, you can also lower the APR by “buying down the rate” with mortgage points. Mortgage points are the fees a borrower pays a mortgage lender to trim the interest rate on the loan. Each point the borrower buys costs 1% of the mortgage amount. For example, one point on a $200,000 mortgage would cost $2,000.
SBW offers low APR rates AND charges fewer points.
At Savings Bank of Walpole, we offer a low APR and we charge fewer points to buy down the rate.
Want to learn more? Make an appointment with one of our loan specialists, or give them a call at (603) 352-1822.
Have additional mortgage questions? Let us be your guide!
Visit our Mortgage FAQs page or give us a call, (603) 352-1822.