i got 2 mortgage interest estimates - one is apr. what is the difference??

APR versus Actual interest rate is that APR takes the interest rate and factors in closing costs and mortgage insurance (if applicable). My take is comparing loans by APR is a TERRIBLE way to compare lenders UNLESS both are quoting you the EXACT SAME actual interest rate. I have a great article on the subject at http://joemetzler.com/apr.htm

Great explanation by Paul, short answer: APR is the "effective" cost of the loan after deducting what are considered "financing" fees by the government. As long as both quotes use the same estimated closing date the APR should help you to compare, but differences in estimated costs for prepaid interest and some attorney/title fees can affect the APR on your loan so you really need to look at the details - they matter.

PS. A good lender will offer to compare their quote to the competition and show you why theirs is better, or offer to match the difference. I'm licensed in TX (company headquarters in Dallas) if you'd like another opinion/option

Hi Ginnifer, the quoted rate (not the apr) is the rate your loan is based on during the term (assuming it's a fixed rate). The APR is the rate when certain fees are calculated into the loan. It is a measuring tool to compare the true cost of loans when shopping lenders or programs. It's required that both are disclosed. If you like simple, straight to the point answers, call me.

Call me and will explain