Every Monday Morning at 8:15am, join me on my Facebook page as I sit down with a local lender, and do a live interview and talk about a Mortgage Tip that may help YOU with your next Real Estate Purchase. 

This morning I sat down with Justin Froiland from Fairway Mortgage. Today we talked about APR and monthly APR as well as discount points. You can reach Justin at 605.695.1429 or justin.froiland@fairwaymc.com.  His office is located at 412 5th St., Brookings SD 57006 or on the web at www.BrookingsMortgage.com 


APR (Annual Percentage Rate) and Monthly APR/Discount Points


- Hey everybody, good morning. Shane Andersen with the Brookings Home Team, powered by Century 21 and Justin here from Fairway Mortgage. It is actually Tuesday, it's not Monday. So we're doing the Monday morning mortgage tip Tuesday version today due to the holiday. Hopefully everybody had a great weekend and is getting rested for work now I guess after the great weekend here. Justin got some sun and probably be feeling a little bit of the burn here later on.

- Oh yeah.

- But we'll let Justin go with the tip that he has for us today on this Tuesday version. So, go ahead Justin.

- Perfect. Well thanks for having us Shane. I hope everyone had a happy, fun, safe Memorial Day weekend and today, I thought I'd spend a little bit of time talking about the two different types of interest rates that you're going to see when you go through the mortgage process. One of em is gonna be the APR, the annual percentage rate, and the other one's gonna be your actual monthly interest rate that you're paying on your outstanding principal balance. The APR is typically, you're gonna be a little bit higher than the actual interest rate that you're paying. The reason being is that APR takes into consideration all of your closing costs and your pre-paid items that you incur throughout that first year of the loan. So it appears to be a little bit higher than your actual monthly interest rate. It's a good way to compare from lender to lender as well though. The other thing I wanted to real quickly mention is discount points. I've been asked about that a couple times as of late and it gets to be a pretty intricate topic, but the just of it is, you can either increase your closing costs and elect to take a lower interest rate by buying down that rate. Or you could also elect to take a little bit higher interest rate and have the lender pay for a portion of your closing costs. Each situation is right for the different individuals and if you have any questions on either of those two topics at all, feel free to give me a call and I'd be happy to answer any questions.

- Perfect, yeah so some information on APR and buying down the APR or the discount points there. So, I don't think we've talked about or touched a little bit on that in the past. I thought that was a good one to talk about. So, appreciate that. Again, as always, I'll have all of Justin's information on the top, on the bottom, on the sides, wherever your device allows you to see that. So, feel free to reach out to him anytime. He'll answer any of the questions that you have on APR or just mortgages in general. So, reach out to him anytime and of course, if you have any questions for either of us, feel free to message us as well. You'll make the comments on the top, on the sides, on the bottom, and we'd be happy to answer that on our next episode here. So, that will do it for this week's Tuesday version of the Monday morning mortgage tip. Thanks Justin for jumping in here this morning and doing that.

- Thanks for having me.

- We'll be back next week. As always, if you have anybody that you think would benefit from this video, please share, tag them in it as well and get the information out there. We'd be happy to talk to ya and hopefully see you soon. So, guys, have a great weekend. We'll talk to you next week. Adios.

- Thanks guys.


Thinking of selling and/or moving to Brookings, Volga, or any surrounding areas? Got questions? I’m here to help! Visit BrookingsHomeTeam.com for more details!


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