Mortgage APR Explained | Personal Finance
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Mortgage APR Explained

APR stands for annual percentage rate. This is the amount of interest
you will pay on the loan per year. It depends on a number of factors,
such as whether you have a fixed rate or adjustable rate mortgage,
your credit score and the secondary market. For borrowers, a lower
rate is better, but the lowest rate for the mortgage may not always be
the best because of closing costs, points and the duration of the
loan. How is APR Determined?The APR on your mortgage is a result of
your credit score and market interest rates. If your credit score is
720 or above, you will usually qualify for the best, or lowest,
interest rates.
Fixed Rate MortgagesFixed rate mortgages have the
same APR for th