Mortgage Rate and APR - Utah County Real Estate

By: Robert A. Hulme - Realtor - Loan Officer -Utah County, Including Provo, Orem, Pleasant Grove, American Fork, Lehi, Highland, Alpine and Cedar Hills, Eagle Mountain, Payson, Saratoga Springs, Spanish Fork, Springville, Mortgage Xpress, Agent

Many borrowers don't understand that there is a difference between the Mortgage Rate and the Annual Percentage Rate (APR). The mortgage rate is the base rate usually associated with a mortgage. The APR of a loan is supposed to be an overall interest rate with all the applicable closing costs factored in. Unfortunately, not all lenders include the same costs so not all APR's are created equally. Use the APR as a general guide to the overall cost of the loan but keep in mind that you have to look at the details of what's included to be sure.