Frequently Asked Questions About APRs

What is an APR?

An APR is NOT the interest rate you actually pay. An APR is another way of looking at what your mortgage will cost you. Every mortgage lender is required by federal law to list APR figures next to their quoted interest rates. An APR takes into account the loan costs you pay in addition to the interest rate being charged.

The problem is that posted APRs can vary greatly due to assumptions used in calculations and due to errors made by the people preparing them.

Why are Homeowners Mortgage - posted APRs higher than some other lenders?

Homeowners Mortgage posts APR figures that are typically conservative, which is why our rate and points may be better than a competitor, but they list a lower APR. We have not found other companies APRs to be consistently accurate. In fact, it is our experience that most competitors APR figures are misleadingly low.

We simply will not engage in misleading behavior. It is our approach that consumers should be able to count on the information posted on our site. If anything, Homeowners Mortgage borrowers receive lower APRs than posted on our rate page.

Why I should not just look at an APR in choosing a lender?

Simply stated, you do not know what assumptions are being made in the APR calculation. You also do not know how accurately they are being prepared.