I am applying for a FHA home loan. The mortgage broker says the rate is 6.5% but the document states APR 7.5%?
Wednesday, May 20th, 2009
George asked:
The broker says my rate will be around 6.5% but they have to state APR 7.5% because it has to includes Mortgage insurance because of not putting 20% down. Is this correct? I understand I have to pay the PMI but should my APR be around the 7%? The loan is around $400K 3% down.
Ronnie
The broker says my rate will be around 6.5% but they have to state APR 7.5% because it has to includes Mortgage insurance because of not putting 20% down. Is this correct? I understand I have to pay the PMI but should my APR be around the 7%? The loan is around $400K 3% down.
Ronnie