What are home loan apr’s today?

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I want to know what APR is on home loans as of today and when they are expected to drop, how low?

3 Comments
  1. Reply
    ScSpec
    February 8, 2014 at 12:46 am

    There are a lot of variables, but it is the lowest ever at around 5%

  2. Reply
    I Buy And Sell Houses
    February 8, 2014 at 12:52 am

    As the first answer correctly stated, it really depends on a lot of variables–your credit, the amount you’re putting down, the amount being financed, the particular lender, whether you’re paying points, and more.

    But as the first answer also said, right now it’s roughly 5%. As for the future, no one knows. I’d say the general expectation is that they will drop a bit lower, maybe to the 4-1/2% range, in the next month or two. But that’s only a guess. It’s not likely they’ll rise much, but they might or might not fall, too.

    Don’t make a buying (or selling) decision based on the potential of perhaps a half point swing. Base it on your particular needs (to buy or sell a home) and on your particular circumstances. The interest rate won’t change enough in the next few months to outweigh your own personal concerns and issues.

    Hope that helps.

  3. Reply
    loanmasterone
    February 8, 2014 at 1:36 am

    The nominal APR is calculated as: the rate, for a payment period, multiplied by the number of payment periods in a year.

    However, the exact legal definition of “effective APR” can vary greatly in each state, depending on the type of fees included, such as loan processing fees, monthly or service fees, or late fees. The effective APR has been called the “mathematically-true” interest rate for each year.

    The computation for the effective APR, as the fee+ compound interest rate, can also vary depending on whether the up-front fees, such as origination or participation fees, are added to the entire amount, or treated as a short-term loan due in the first payment. When start-up fees are paid as first payment (s), the balance due might accrue more interest, as being delayed by the extra payment period (s).

    In some areas, the annual percentage rate (APR) is the simplified counterpart to the effective interest rate that the borrower will pay on a loan. When not using the term “effective APR”, the use of “APR” is an early term for nominal APR. In many countries and jurisdictions, lenders (such as banks) are required to disclose the “cost” of borrowing in some standardized way as a form of consumer protection. APR is intended to make it easier to compare lenders and loan options.

    The APR is likely to differ from the mortgage note rate advertised by the lender, due to the addition of other fees that may need to be included in the APR. APRs can be found by asking the lender to provide a Truth in Lending statement. (TIL)

    The lenders are required to disclose the APR before the loan or credit application is finalized and in some cases is called the cost of borrowing and is some form or standardized was of consumer protection. APR is intended to make easier to compare lenders and loan options

    The APR is not likely to drop, what I think you are speaking of is the interest rate.

    The APR could change, but drop or going up is not normally associated with the APR.

    I hope this has been of some use to you, good luck.

    “FIGHT ON”

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