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JA YUNG: The most confusing term that I hear from homebuyers would be APR, also known
as annual percentage rate. The APR is very confusing because it looks and sounds a lot
like an interest rate.
JA YUNG: The difference between an interest rate and the annual percentage rate interest
rate is what your mortgage payments are calculated on.
JA YUNG: The annual percentage rate basically takes into consideration not only the interest
that you're going to pay over the life of the loan but any costs associated with obtaining
that loan, as well.
JA YUNG: So we like to think of it as kind of giving you the big picture of the overall
cost of the financing, but the interest rate itself is what's used to calculate your mortgage
payment.