APR Annual Percentage - Rate for Real Estate

APR Annual Percentage - Rate for Real Estate. Annual Percentage Rate (APR) and effective APR Finance & Capital Markets Khan Academy

APR Annual Percentage - Rate for Real Estate video duration 6 Minute(s) 56 Second(s), published by John Schepcoff on 25 04 2013 - 16:56:12.

http://www.debtfreeorcashpoor.com/ APR
Annual Percentage Rate
When it comes to paying off your real estate faster, we have to make sure that everybody

http://financing-usa.com - Using one of many calculators on FUSA to understand the payments and schedule on a $300000 dollar mortgage with a $20000 down One of the hardest parts about buying a home is understanding all of the terms that are used throughout the mortgage process
So we thought we'd hit the The difference between APR and effective APR
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APR. Annual Percentage Rate. When it comes to paying off your real estate faster, we have to make sure that everybody understands the terminology for example APR annual percentage rate. The one thing that I pride myself most is on concepts and principles. When you bought your first real estate or you refinanced your first real estate, annual percentage rate was a very important concept that most people overlook. When buying a home nowadays, the other party, meaning the seller can pick up the nonrecurring closing fees. But you must structure the fees into the real estate contract otherwise the bank will not accept this. It's important you negotiate to correct fees into a real estate contract. most real estate agents and realtors have a challenge in this area. They have a license but that is the extent. Make sure the agent or the realtor is disclosing the recurring and nonrecurring closing fees onto your contract. If you missed this, the seller does not have to pick up these fees. These are just a few little tricks that you can have your agent or your realtor participate in your transaction. When you put the reoccurring nonrecurring closing fees on top of a loan, it is called effective interest rate or front loading which causes the annual percentage rate to go up on loan. You may or may not have to pick up these fees but the bank must disclose the APR annual percentage rate. When these figures are on the loan, you should be able to tell if your are getting ripped off from the bank or the loan officer or both. Now the terminology that I like to use what is called effective interest rate is that true rate on the loan itself. For example if you get a 6% the true effect of interest rate is closer to 87%. Why you might be asking. Because all the recurring and nonrecurring fees that go on top of the loan has to become a percentage which is called effective interest rate. When you buy a home for example a 30 year term loan, you were paying three times for that home. wouldn't it be nice if you can actually shorten the term of that loan? Well you can when you are using my mortgage coupon program. The mortgage coupon forces the lender to adhere to the banking rules. We all agreed to front loading. The difference is when we use John Schepcoff's mortgage coupon program, we are doing the reversal back to the lender. In other words, the lender is paying you interests for the use of your money. Right now your lender does not pay you any interest when you give them a principal payment. This is a fact! So now you have a way to control the effective interest rate by using John Schepcoff banking clause that forces the lender to adhere to the banking rules. The APR or annual percentage rate is different from the interest rate. The APR is a guide or a measuring stick so you know that you are getting the very best rate on your loan. by law the bank officer or loan officer must disclose everything and completely on the loan application or the 1003 what it is called. Beware there are many loan officers and bank offers that do not disclose correctly on the 1003 or loan application. I call these people wannabes because they really don't have a clue what's going nor do they care about you and I. Legally they cannot be off by 10%. If this happens you can sue the bank and the loan officer for not disclosing correctly.