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How can different lenders offer the same Rate but different APR?

I completed a loan request on zillow and received several offers with the same rate but different APRs.  Why is that?  Also, does anyone have any suggestions on good books that explain the whole mortgage process to a beginner?
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March 09 2009 - US
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Answers (4)

Annual Percentage Rate (APR)

A measure of the cost of credit, expressed as a yearly rate. It includes interest as well as other charges. Because all lenders follow the same rules to ensure the accuracy of the annual percentage rate, it provides consumers with a good basis for comparing the cost of loans, including mortgage plans.

That may be the funniest one line I have ever read!

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March 09 2009
Flanigan,

Here's a link that has a condensed explanation. LINK ... Best wishes, Rudi
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March 09 2009
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  • Arla
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APR is supposed to be a determination of actual rate based on how much extra it costs you to get the loan, as well as the interest rate.

In theory (assuming the zillow rates are all right) the one with the lowest APR FOR THE SAME INTEREST RATE (very important that) is the one that is going to cost you the least (at least that's my understanding).

I read the book "How to buy a house in CA" and that gave me a reasonable understanding of mortgage processes.
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March 09 2009
The APR will change based on what each lender quotes for closing costs.  In addition different lender will include and exclude fees that other lenders don't...Confused you should be!

I call the Truth-In-Lending...the Confusion in Lending..

I personally think the APR is virtually useless in comparing lenders.

Just my .02
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March 09 2009
 
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