Help please. Does this sound like a high APR?

[Anonymous]

I got pre approved the other day for a 5 or 10% down conventional loan. My middle mortage score is 695.

I told my max monthly payment would have to be around 750.00 per month. A couple days later she gave me some paperwork with some quotes on it.

If I do the Home Ready course it will take my interest rate from 4.5 to 4.25%

The first quote is 10% down on a 105,000 loan. No Home ready.

4.5% interest with 4.656% APR

2nd quote is 10% down on a 105,000 loan with the Home Ready

4.25% interest with 4.736% APR (Why is the APR so much higher?)

3rd quote is 5% down on a 94,000 loan. No home ready.

4.5% interest with a 4.664% APR

And the 4th quote is 5% down with the home ready

4.25% interest with 4.973% APR (Again very high APR?)

Does this sound "normal" to you? I'm not really up on the APR thing fully yet but don't wanna get burned either.

[Revelate]

APR is affected by the fees for the individual loan programs; basically it's an attempt to normalize rate + fees over the life of the loan.

[Anonymous]

Thank you for the reply.

I have a basic understanding of APR but I don't know if something sounds really high. Like those numbers I put up, does that sound decent or like heck no that's nuts!

[NC_Mtg_Loaner]

What's your DTI?

What other credit accounts do you have open?

What are those balances?

[JVille]

You need to look at the loans costs that are affecting that APR (what’s all in there?) Compare the costs side by side and ask about anything significantly different. Don’t let the APR drive you nuts but look at those details.

“The devil is in the details”

[Shooting-For-800]

Depends on loan costs and points.

They are a little high but your scores are well under the 740 normally required.

Again, loan costs matter.

We did a refi at 4.5% but paid $0 in loan costs and got free HELOC also.

Some people may get 4.00% but have to pay $20k or more loan in costs.

[CreditInspired]

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@Anonymous wrote:

Thank you for the reply.

I have a basic understanding of APR but I don't know if something sounds really high. Like those numbers I put up, does that sound decent or like heck no that's nuts!

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I found this link (How to calculate APR in Excel) that may help you understand and calculate your APR for each example you gave.

https://www.thebalance.com/annual-percentage-rate-apr-315533