01-13-2009 08:04 AM
Hey all--hubby and I started the refi process, and we secured a rate of 4.25% on a 15 year loan.
Anyway on the truth in lending, it shows the apr as 4.637%--the loan officer said it just represents the amount truly financed, and that my interest payment is based on my rate and not on my apr. Can anyone verify??? The truth in lending was the first time we saw interest at less than half our home value....crazy.
The rate was on the other documents but when I saw the APR on the truth in lending I started asking questions. Someone please let me know.
01-13-2009 09:02 AM
The APR on the TIL reflects all of the pre-paid finance charges (PFC) that are charged to you at closing - pre-paid interest, origination/discount fees, most lender fees, escrow settlement fee, etc. are all items that are included in the APR calculation.
You'll find a lot of good reading on it at http://mtgprofessor.com/mandatory_disclosures.htm as well.
01-13-2009 09:40 AM
The bottom line is that your monthly payments are going to be calculated using the 4.25% interest rate. Use any online mortgage calculator, plug in your principal, rate, and length or mortgage, and you'll get exactly what you'll have to pay each month (principal and interest, not any escrowed taxes or insurance). It should match what your lender is quoting.
4.25% is a great rate!
01-13-2009 05:39 PM
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions based on Experian or Equifax data (additional FICO® Score versions based on TransUnion data are not currently available on myFICO.com). Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.