What's included in APR?+
APR includes the interest rate plus most fees: origination fees, mortgage broker fees, mortgage points, and most closing costs. It does NOT typically include: appraisal fees, credit report fees, title insurance, or third-party fees. Always check what each lender includes in their APR calculation.
Should I choose the lowest APR?+
Not always. A lower APR loan with higher fees is best if you keep the loan long-term. A slightly higher APR with lower fees is better if you plan to sell or refinance within a few years. Calculate the break-even point: divide the fee savings by the monthly payment difference to find how many months until you break even.