Interest rate vs APR - Credit Union vs Bank
I was looking at different credit unions offering lower interest rate than Banks and was confused on how the delta between interest and APR is very high for credit unions compared to Banks. For example: Credit Union -Mortgage rate: 3.0 % and APR of 5.2% Chase Bank - Mortgage rate: 5.1% and APR of 5.2% So is there any benefit of going with the credit union over chase bank? As I am under the assumption that eventually its APR what matters at the end of the day. Please advise and thanks in advance. #mortgage #housing
Between rates and APR, APR is what you need to pay attention to. That is your true cost of debt it includes fees, points, etc. All other aspects being equal, go with whoever you feel comfortable with. Another thing you could do is negotiating with chase to see if they can give you a better rate. Wish you the best!
apr is useless if comparing arm rates
Can you explain why?
rate wii change and no way to know to to what level .. this occurs every 12 months after fixed rate period ... lenders calculate aprs diff ways
avoid using APR to compare ...get quotes using exact same parameters on the same day and then compare apples to apples ....make sure to review the loan fee / closing costs for the note rates that are proposed