U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 10-30-2013, 08:56 PM
 
5 posts, read 5,539 times
Reputation: 10

Advertisements

Hi everyone,

First time posting but I figured this would be the best place to get unbiased information. I'm financing a home for $46,000 at an interest rate of 4.875%. After all the closing costs the stated APR is 6.762%.

I know the Apr is always higher than the interest rate on the loan, but is it typically THAT much higher?!

Here's an excerpt from my worksheet:

Cash to close:
Purchase price: 46000
Prepaids: 2160
Closing costs: 2891
Prorations due: 563
Subtotal: 51615

Less credits:
Total loan amount: 44390
Subordinate financing: 7500
Subtotal: 51890

Cash to/from borrower: -274.59

I rounded these numbers so they won't add up perfectly, but hopefully you get the Idea. Thanks for any and all replies!
Reply With Quote Quick reply to this message

 
Old 10-30-2013, 10:49 PM
 
Location: MID ATLANTIC
7,609 posts, read 17,682,742 times
Reputation: 8107
Sounds like an FHA loan, it's the mortgage insurance that is being considered in the APR

Totally normal.

What is the difference between an interest rate and an APR? - Consumer Financial Protection Bureau
Reply With Quote Quick reply to this message
 
Old 10-31-2013, 10:22 AM
 
5 posts, read 5,539 times
Reputation: 10
Ok great, just making sure those closing costs weren't totally absurd.
Reply With Quote Quick reply to this message
 
Old 10-31-2013, 10:47 AM
 
Location: Scottsdale, AZ
1,987 posts, read 3,800,112 times
Reputation: 2892
I want to know where you found a lender that would give you a $44K mortgage? I have not found anyone that will go below $50K.
Reply With Quote Quick reply to this message
 
Old 10-31-2013, 11:11 AM
 
5 posts, read 5,539 times
Reputation: 10
Hmmmm well I'm still in the process but they pre-approved me when I submitted the offer.
I would assume she would have made it known at the onset if they'd reject a 50k loan
Reply With Quote Quick reply to this message
 
Old 10-31-2013, 09:21 PM
 
Location: Southern California
4,350 posts, read 4,952,033 times
Reputation: 2129
Quote:
Originally Posted by AZJoeD View Post
I want to know where you found a lender that would give you a $44K mortgage? I have not found anyone that will go below $50K.
I've seen them go as low as $20k in California. They must have them in Az too.

It is the subordinate funding that gets me.

The lower the loan amount the larger the spread for APR, that is a small loan amount.
Reply With Quote Quick reply to this message
 
Old 10-31-2013, 09:24 PM
 
5,564 posts, read 7,668,146 times
Reputation: 5830
Quote:
Originally Posted by Khall187 View Post
Hmmmm well I'm still in the process but they pre-approved me when I submitted the offer.
I would assume she would have made it known at the onset if they'd reject a 50k loan
I wanna know where you get a house for 44K!
Reply With Quote Quick reply to this message
 
Old 10-31-2013, 09:30 PM
 
Location: northern va
1,555 posts, read 2,000,557 times
Reputation: 1328
Quote:
Originally Posted by Spazkat9696 View Post
I wanna know where you get a house for 44K!
Baltimore would love to have you!
Reply With Quote Quick reply to this message
 
Old 10-31-2013, 09:45 PM
 
5,564 posts, read 7,668,146 times
Reputation: 5830
Quote:
Originally Posted by kww View Post
Baltimore would love to have you!
In VA Beach you're looking at 300K-400K minimum for a good area.
Reply With Quote Quick reply to this message
 
Old 10-31-2013, 10:08 PM
 
Location: Southern California
4,350 posts, read 4,952,033 times
Reputation: 2129
Look into Detroit for $1
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top