The mortgage bond market sets the overall interest rate trends. Every day, traders in New York and online trade Mortgage backed Securities. When the bond prices increase, mortgage rates fall. Bond prices normally are bid up when the economic outlook sours, or when there is uncertainty globally in money flows into safer investments like US [...]
APR is an acronym for Annual Percentage Rate. It’s a government-mandated calculation meant to simplify the comparison of mortgage options. It is probably the most misunderstood number at any closing or with any application. A loan’s APR can always be found in the top-left corner of the Federal Truth-In-Lending Disclosure. Because APR is expressed as a percentage, [...]
