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The Mortgage Professor: Can mortgage shoppers rely on the APR?

APR stands for "annual percentage rate," designed to be a comprehensive measure of the cost of credit that mortgage borrowers could use to compare loans offered by different lenders, or loans with different features. The APR adjusts the interest rate to take account of all loan fees paid up front by the borrower to the lender. (Note: It does not take account of fees paid to third parties, such as appraisers or title insurers). Mortgage shoppers confront the APR as soon as they search for interest rate quotes, because the law requires that any mortgage interest rate quote by a loan provider must also show the APR.

Business

The Mortgage Professor: Can mortgage shoppers rely on the APR?

APR stands for "Annual Percentage Rate," designed to be a comprehensive measure of the cost of credit that mortgage borrowers could use to compare loans offered by different lenders, or loans with different features. The APR adjusts the interest rate to take account of all loan fees paid up front by the borrower to the lender. (Note: It does NOT take account of fees paid to third parties, such as appraisers or title insurers). Mortgage shoppers confront the APR as soon as they search for interest rate quotes, because the law requires that any mortgage interest rate quote by a loan provider must also show the APR.

Business

The Mortgage Professor: Why the HECM reverse mortgage market is stunted – and what can be done about it

During my lifetime, retirement planning has become more and more challenging. People are living a lot longer, which makes retirement periods longer, and fewer people retire with employer-provided defined benefit pension plans. On the positive side of the ledger, the rate of homeownership is higher, home equity is a major part of the wealth of seniors, and we now have the HECM reverse mortgage program that allows home owning retirees to convert that equity into spendable funds. This is a well-designed program with government insurance protecting both the retiree borrowers and the lenders who fund them.