Mortgage interest rates are based on several variables including your credit score, your loan amount versus appraised value (a.k.a Loan-to-Value), the type of loan (i.e. purchase, refinance, cash-out, etc.), the type of loan (i.e. Conventional, Jumbo, FHA, etc.), as well as bond market conditions which change almost everyday.

Anyone that quotes interest rates without knowing the details of your specific situation is just guessing. Don’t be fooled by low interest rate offers without knowing all the variables and always compare your Annual Percentage Rate (a.k.a. APR) to be an informed shopper.

APR. The Annual Percentage Rate is a critical factor in comparing mortgage offers from different lenders. It is the total cost of the credit expressed as a yearly interest rate. This rate is different than the simple interest rate on your loan, because the APR includes all costs associated with your Home Loan such as discount points, origination points, and processing fees. Knowing the APR makes it easier to compare “apples to apples” when considering Home Loan offers. Look for the APR for your loan. If the APR is high it means the lender is charging you discount points to “buy-down” the interest rate.