Many people think that they can comparison shop by APR mortgage interest rates. This is unlikely to get them the best deal as the following column explains:
The important thing to remember is that APR is not the metric for comparing mortgages — it’s merely a metric. The better way to compare two mortgage rate offers is to look at the mortgage rates as compared to the fees. APR should have nothing to do with it.
If you’re shopping for a mortgage by APR, stop now. Start with a fresh quote for a mortgage rate — that’s the rate at which you’re borrowing anyway. Get a rate quote without fee or obligation and shop for rates the right way.