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Did you know that the advertised APR and the APR you really pay on a loan isnít necessarily the same? Itís true! By the time you include other factors such as closing costs, your APR will not be exactly what you thought it was.
If you purchase a home valued at $300,000.00 and take out a 30 year loan with a 5.000% interest rate, you will actually be paying 5.128% if you make a $30,000.00 down payment. This figure is computed after factoring in the closing costs and the points, assuming you purchase one point with the loan you take out.
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