Posted interest rate is the Note Rate which is used to determine the actual principal and interest payment on the loan. It is the interest rate that will appear on the loan contract (the mortgage note). It has an APR of 6.471% which is based on a loan amount of $150,000.00 with a 360 month term.
The Annual Percentage Rate (APR) is not the note rate and does not affect the monthly payments. It is used to compare loan programs from different lenders. It is the effective rate of interest for a loan per year. Regulation Z of the Federal Truth in Lending law states that all Prepaid Finance Charges are to be considered and included in the calculation of the APR of a loan. Please note that the APR is sometimes computed differently by different lenders and can be misleading.
Prepaid Finance Charges: These are certain charges made in connection with the loan, which must be paid upon the close of the loan. These charges are defined by the Federal Reserve Board in Regulation Z and the borrower must pay the charges. Non-Inclusive examples of such charges are: Loan origination fees, Points or Discount Points, Private Mortgage Insurance or FHA Mortgage Insurance, and Tax Service Fee.
Advertised rates are subject to change without notice. $150,000.00 loan amount is for disclosure purposes only. It is not the FHA loan limit. Please check here for the FHA loan limit in your area.
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