In a 30 fixed mortgage, why Interest rate, APR and Estimated payment per thousand per month are different?

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Posted on Apr 30, 2011 | 10 comments

In a 30 fixed mortgage- 2point loan, why Interest rate, APR and Estimated payment per thousand per month are different?
here are the vlalues:
Interest rate:5.250%
APR:5.46%
Estimated Monthly Payment per $ 1,000: $ 5.52

with a cheaper interest rate, to pay off the remainder of my mortgage??

I have a 40 year fixed rate mortgage of 538k. The monthly payment is 3200 per month. The interest rate is 6.75

I have a 40 year fixed rate mortage. Welp, really a 30 year mortgage amortized over 40 years with a lump sum due in 30. We are 2 years ...

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Is the interest in a mortgage payment for last month or next month?

I'm in the process of refinancing and I have a question about the breakdown of the typical mortgage payment. The amount required to payoff the old loan does not ...

My 30-year fixed rate first loan payment of $ 1,400 to $ 1,700 per month?

My loan was sold the race and now they have my payments each month more than $ 300 per month! (I have done it twice in fact.) For years, ...

What is a good fixed interest rate for a Mortgage Loan?

I have a mortgage loan at 184,000.00 at a fixed interest rate 6.95% for 4o years. How fast can I pay this off?

we did a mortgage 6 months ago and now the bank said going to be a different payment can he do this is fixed?

we did a loan with Washington Mutual and now after six months they said the payment change because the escrow and processor dont send them enough money, they can change ...

100% no money down traditional 30 year fixed mortgage is the interest rate of 6,5% is good?

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How much can I expect for an interest rate on a fixed interest rate mortgage on an FHA loan?

What does it depend on? Are FHA loans always the same rate on the same day, know what I mean?My score is bad, the only thing I have is good ...

If you have to pay an affordable monthly mortgage payment of $ 945 and available on loan for 30 years, an interest rate of 6,5%?

What would your "the amount of bonds holiday" is?

I have a 40 year fixed rate mortgage

should i lock in my variable rate 2nd

Is the interest in a mortgage payment for

My 30-year fixed rate first loan payment of

What is a good fixed interest rate for

I have a mortgage loan at 184,000.00 at

we did a mortgage 6 months ago and

100% no money down traditional 30 year fixed

How much can I expect for an interest

If you have to pay an affordable monthly

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Community Answers

4-30-11

AM-NM centaur says:

Two 30-year fixed-rate loans at the same interest rate should have the same monthly payment per thousand dollars. If they don’t, they are concealing details of the loan terms. I’ve found that many mortgage brokers are pretty stupid and do not understand the mathematics behind the calculations.


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4-30-11

variance75 says:

Based on fair lending regulations, you must disclose the APR. The APR is inclusive of points and fees. So while the on going interest rate is 5.25% in this case your APR (after fees and points) is 5.46%

The regulation was enacted to give borrowers a way to compare all loans by a standard number namely APR.

The problem is that many lenders skirt the rules by charging fees that fall outside the APR calculation like processing fees and overnight fees.


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4-30-11

oskarmyloanguy.com says:

Interest rate is the actual rate you are being charged on the amount you are borrowing. There are costs involved in this trasaction so the APR includes the costs in the transaction and turns them into a percentage.


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4-30-11

KN says:

That’s a darn good rate. I would stick with it. I don’t think you are going to get a rate lower than that.


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4-30-11

reenzz says:

You won’t find a cheaper rate than that in this economy. Stick with your current rate until it adjusts.


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4-30-11

src50 says:

You want to pay off your mortgage with a home equity loan? That makes no sense. Further, 5.15% is a lower rate than you will find anywhere now.


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4-30-11

mortgage underwriter says:

There’s not much out there if any without paying points. Stick with it.


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4-30-11

Biggie @ Arbor Mortgage says:

Cheaper interest rate? Stay where you are at! That is a great rate & no one will be able to beat it!


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4-30-11

godged says:

That is a really good interest rate, you aren’t going to find anything cheaper than that. What you want to do is refinance, a HELOC will be a higher rate. But as eveyone is advising, stay where you are.


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4-30-11

Charles97 says:

You have a great rate. I don’t recommend for you to refinance unless you have too. Just incase if you have to do to personal reason. Look on this web site to see if you can get a rate closer to that.

http://www.amerisave.com/partner/chongthong


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