MortgagesUndressed

The APR intention is a good one: provide the consumer with a way to compare rates and fees in one number so you can see the difference in what lenders are charging you. It was to be the simple way for consumers to shop.

The problem is that it isn’t simple, it is confusing, and most lenders are inaccurate and sloppy in this. The bigger problem is you the consumer don’t and won’t understand it. Truthfully, I bet if you ask 3 loan officers what are the components of the APR formula you would get 3 different answers.

If loan officers don’t get it, how can you? Even more important, how can you count on it?

There are supposed consequence to inaccurate quotes, sure that helps for the one a million that get that far.

My suggestion, don’t count on using APR. To me it is like being in a boxing match and putting your guard down. It is like saying, “go ahead and rip me off.”
You would be much more effective in learning the details of lending and find the right lender on line on this site, making sure you get to a loan officer that has a real estae agent referring you, and being careful.