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 Andrew Jallo from Dacotah Bank. Andrew explained the differences between Annual Percentage Yield and Annual Percentage Rate.  You can reach Andrew at 605.692.8600 or Andrew.Jallo@dacotahbank.com.  His office is located at 1441 6th St., Brookings SD 57006 or on the web at www.dacotahbank.com.

 APY versus APR

- Good morning everybody, Shane here from the Brookings Home Team powered by Century 21. Before I forget, happy Thanksgiving, it's turkey week. No, I don't have a turkey next to me but I am the turkey. This turkey though did just get back from vacation, so it looked pretty nice, but aside from that it is Monday morning, 8:15 or a little after 8:15 and that means it's our Monday morning mortgage tip, and I got Andrew here from Dakota Bank and we'll let you take it over with what you'd like to talk about today.

- Yes, so good morning everyone. Shane asked me to talk about APY versus APR, so that comes into play with the financial industry. APY is your annual percentage yield. A lot of you that are saving are familiar with that so if you open up a certificate of deposit or maybe a money market account, we need to disclose that annual percentage yield. On the lending side, you come visit with me, a lot of times your first question is what's the interest rate? Well, really your question should be what is your APR, your annual percentage rate? So your APR takes into consideration your rate as well as loan fees, so we as financial institutions are required to disclose apples to apples. So let's say my interest rate is an eighth percent lower, but I charge higher fees, you as a consumer might be confused what is the better rate, so we as lenders have to disclose APR. So you should be comparing your APR to another institutions APR, so what we say is compare apples to apples in that perspective. So, again, APR does take into consideration your rate as well as loan fees, so origination, buy down, discount points, so, we as your lender, we are able to explain that rate to you and kind of work those numbers if you ever do have questions.

- Yeah, it is, I've been asked that a couple different times so I wanted Andrew to speak on that a little bit so thank you for that, it does get a little confusing, so the best thing to do is just come in and talk with Andrew personally. I'll have all of his information on the top, on the bottom, on the sides, wherever that device allows you to see it, so feel free to reach out to him and of course if you have any questions, even extending onto this, let us know, we'd be happy to talk about that in our next episode as well. Feel free to share this video with anybody else you think would be interested in it and be sure that you like our pages and keep informed as we do these Monday morning mortgage tips. So thank you Andrew, got plans for Thanksgiving?

- Eat probably way too much food like usual. How about you?

- I'll just, I'll be pigging out.

- Right? Gotta enjoy it.

- Lots of turkey and ham. So everybody have a great Thanksgiving, we'll be back next Monday for the next Monday morning mortgage tip. So thanks again for watching everybody, have a great week, we'll talk to you later.

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