Hawaii Best Loans LLC

Phone: 808-591-1137

Mobile: 808-349-1619

Fax: 866-850-8616

ashlee@hawaiibestloans.com

NMLS#: 397936

Hawaii best loans llc

      Hawaii Best Loans LLC (NMLS#: 397936)
      Address: 1288 Ala Moana Blvd, 19E

                    Honolulu, HI 96814
                

Ashlee S. C. James

(NMLS#: 368025)

NMLS#: 397936

Mortgage interest rates are lower than at any point in history!

Now is the time to consider purchasing your dream home or refinancing your current mortgage.

Hawaii Best Loans LLC

is here to help you!

Hawaii Best Loans

Contact Us

Stay Connected

Copyright © Hawaii Best Loans LLC  |  All Rights Reserved

1288 Ala Moana Blvd. #19E Honolulu HI 96814 US             808-591-1137          ashlee@hawaiibestloans.com

What is the difference between the interest rate and the A.P.R.?

You'll see an interest rate and an Annual Percentage Rate (A.P.R.) for each mortgage loan you see advertised. The easy answer to "why" is that federal law requires the lender to tell you both.

The A.P.R. is a tool for comparing different loans, which will include different interest rates but also different points and other terms. The A.P.R. is designed to represent the "true cost of a loan" to the borrower, expressed in the form of a yearly rate. This way, lenders can't "hide" fees and upfront costs behind low advertised rates.

While it's designed to make it easier to compare loans, it's sometimes confusing because the A.P.R. includes some, but not all, of the various fees and insurance premiums that accompany a mortgage. And since the federal law that requires lenders to disclose the A.P.R. does not clearly define what goes into the calculation, A.P.R.s can vary from lender to lender and loan to loan.

The A.P.R. on a loan tied to a market index, like a 5/1 ARM, assumes the market index will never change. But ARMs were invented because the market index changes and makes fixed rate loans cheaper or more expensive to make -- that's why they're variable rate in the first place!

So, A.P.R.s are at best inexact. The lesson is that A.P.R. can be a guide, but you need a mortgage professional to help you find the truly best loan for you.

Note when you're browsing for loan terms that the A.P.R. will not tell you about balloon payments or prepayment penalties, or how long your rate is locked. Also, you'll see that A.P.R.s on 15-year loans will carry a higher relative rate due to the fact that points are amortized over a shorter period of time.