How can I compare rates and fees different loans offer when shopping for a mortgage?
When shopping, compare loan terms, settlement charges, and the Annual Percentage Rate (APR). The APR, which is usually higher than the interest rate, expresses the total cost of the mortgage as an ongoing annual rate and includes certain fees, points, closing costs and other expenses. Although one lender may have a slightly lower rate, they may charge more fees, and hence have the same APR as a lender with the slightly higher rate.
