Mortgage Loan: Annual Percentage Rate (APR) and the Truth in Lending Act

If you are in the market for a mortgage it is important to understand what the Annual Percentage Rate means and what you need to know in order to find the best mortgage. Here are tips to help you shop smartly for your mortgage loan.

Comparison shopping for a mortgage can be a difficult task. Mortgage lenders use one interest rate to calculate your monthly payment but advertise a different interest rate. What does it all mean anyhow? When you shop for a mortgage it is important to understand the difference in the two interest rates. Here is what you need to know.

Annual Percentage Rate

The Annual Percentage rate (APR) is calculated by factoring in interest charges and any other fees charged by mortgage lenders over the duration of the loan. APR is expressed as a yearly expense. This formula gives you a good (but not great) estimate of the cost of any given loan offer.

Truth in Lending

Legislation in the United States, The Truth in Lending Act, requires mortgage lenders to post the Annual Percentage Rates for all of their loan offers. This legislation is intended to protect borrowers form deceitful lending practices.

APR is a Good Starting Point; However

You will want to get the complete picture of all costs, including closing costs. Closing costs are listed on the Good Faith Estimate your lender is required to provide you after receiving your application. You will want to apply with more than one lender to get your hands on this Good Faith Estimate for all of the loan offers you are considering. You can learn more about finding the best mortgage loan and avoiding common mortgage mistakes by registering for a free mortgage guidebook.

To get your free mortgage guidebook visit RefiAdvisor.com using the link below.

Louie Latour specializes in showing homeowners how to avoid common mortgage mistakes and predatory lenders. For a free copy of \"Mortgage Refinancing: What You Need to Know,\" which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com.

Claim your free guidebook today at: http://www.refiadvisor.com

Apex Mortgage Refinance

Annual Percentage Rate - Your Mortgage and Home Loan Options
For a borrower, the pursuit of a loan can be a nerve-racking endeavor. Many lenders use numbers and ambiguous terms to take advantage of young borrow...

Mortgage Loans Explained In Plain English
With the many different kinds of mortgage loans out there, choosing the right one for your needs can be a difficult task. The following points will he...

What You Need to Know to Refinance a Home Mortgage Loan
For many people there comes a time when it makes sense to refinance their home mortgage. There can be any number of reasons to do this but for most pe...

Mortgage Loan Expense Comparison Calculator
Loan FactorsHere are some basic mortgage loan expenses:loan amountinterest rateloan lengthmonthly paymentclosing costs Loan AmountComparing offers fro...

2nd Mortgage Loans
2nd mortgage loans are still quite popular right now even with all of the mortgage turmoil over the last year. Rather than a line of credit or a high...

Shopping For Rates on a Mortgage Loan
Shopping around for the best possible deal on your mortgage loans is very important. A difference of just a few percentage points will translate into ...

Best Mortgage Rate - How To Take Advantage Of The Best Home Loans
To get the best mortgage rate, its always a good idea to shop around. A mortgage is just like any other product and its price and terms may be negotia...

Best Home Mortgage Loan Refinances
A home mortgage is one of the most commonly used methods to buy a home in many countries. A mortgage is a kind of loan which uses the property that is...

Mortgage Information - Refinancing? Second Mortgage? Home Equity Loan? Understand The Basics
A mortgage is usually the biggest purchase that an individual makes, and because of that, many people tend to get nervous during the process. But woul...

Home Mortgage Refinance Loan - How to Find the Best Mortgage Lender
If you are in the process of applying for a home mortgage refinance loan, comparison shopping for the best mortgage company will save you money. Find...

Don’t Want to be the Next Predatory Lending Foreclosure Victim? Mortgage Loan Comparison Worksheet
I am a former senior loan officer for a regional mortgage bank. It made me sick to see how we took advantage of consumers for thousands of extra doll...

Wisconsin Home Mortgage Loans Beware of These Three Things
Buying Wisconsin real estate is tempting. Housing is very affordable, ranging from less than $35,000 to more than $2 million. No matter what type of h...

Mortgage Refinancing: Shop Around for the Best Loan And Save
Everyone likes saving money and finding a good deal, why should your mortgage be any different? Many homeowners take the first loan offer they receiv...

Mortgage Loan Options - Going Exotic
In the past, a person had limited options when borrowing money for a home purchase. These days, there are exotic mortgage loan options that satisfy ju...

Georgia Home Mortgage Loans: Beware of These 3 Things
Currently, Georgia has the strictest mortgage laws in the nation. According to The Georgia Fair Lending Act, home loan lenders cannot finance credit i...