What's a good interest rate on a mortgage right now?

[jilln]

And what's the difference between the rate and the APR?

[shireen]

1. resource ...

Rates are posted at http://www.bankrate.com/ Click the "mortgage" button,

They also have a glossary that explains the different terms (see top right of page).

[aquamarina]

2. Many factors dictate the interest rate

What state do you live in?
What is your FICO score?
How much are you trying to borrow in relation to the purchase price, i.e. loan to value?
What kind of loan do you want - fully amortizing, interest only, etc.
How long do you want the loan - 3 years, 5 years, 10 years, 15 years, 30 years, etc.

Interest rate v. APR
APR allows the borrower to figure out the true cost of the money they are borrowing. For example, if you are tying to borrow $200,000 at 6% but with fees and costs, you are actually borrowing $208,000 then the true interest rate is actually higher than 6%. The higher interest rate is the APR. It is a way for borrower to compare the actual cost of the money being borrowed.

That all being said, interest rates in general are hovering around 6%.

Cheers!

[Lex]

3. An APR includes all the fees and costs the lender charges in order

to get the loan.

The interest rate is just the rate itself charged on the money.


The higher the APR is than the interest rate, the more fees and costs there are that the lender's charging you.

[jilln]

4. Thanks all.