Sunday I was reading the Business section of the local paper. It contains a segment on Money Rates in the Tri-Cities. The article has a table listing mortgage rates for various Tri-City banks. I believe this table is of limited value for two reasons. One is that interest rates are dependent upon credit scores. I can only assume the published loan rates are for those with the best credit scores.
Secondly the annual percentage rates (APR) are dependent upon loan origination and processing fees. When a present or future home owner combines the loan rate with the loan origination fees, the annual percentage rate (APR) is identified. The APR is the rate that really informs the consumer about the price of the loan. Therefore, it makes more sense to publish APR’s. This is the standard for comparisons. Always ask your lender for the APR and compare this rate with other lenders. This is a service performed by many mortgage brokers.