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Rates, points and APR:
Interest rates, points and annual percentage rates (APR)
are all important in selecting your loan. They, along
with the amount of the downpayment you make, affect
the amount of your payment.
Everyone wants the lowest interest rate they can get
when buying or refinancing a home. But to really compare
rates, you need to compare the APR
(annual percentage rate). That's because some loans
with lower rates may have higher closing costs or you
may have to pay discount points to get that rate. Also,
adjustable rate mortgages (ARMs) usually have lower
initial rates, but the rate increases in future years.
Look at all of these factors before deciding which rate
is really best for you.
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