Loans

7 Replies

When you are looking at typical conventional loans what is your biggest concern:

APR- What you are calculated to pay w/ all costs involved

Interest Rate

Minimizing fees

Others???

Any thoughts

@Jon Holdman

@Ned Carry

@J Scott

Depends on what your plans are, really. If you're looking at a shorter term hold the the fees become a primary concern, the rate much less so. On a longer term hold it might be worth paying more fees for a lower rate. You'd just have to do the math for the various scenarios

Thanks @Jean Bolger , just looking for any other input that I might not have considered on this

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I have an article written on the fallacies of APR. The number is almost irrelevant as it attempts to create one particular view on how to price mortgages but savvy lenders can use it to lure unsuspecting borrowers to a "lower APR," that may end up yielding the borrower a higher overall cost of funds.

It all depends on your time you'll be holding your note or property, closing costs, and opportunity costs in your given situation that will ultimately determine which type of product or strategy will yield the lowest after tax cost of funds.

Great, thanks Albert- I plan to keep the note so a lower APR is important for me, however all things considered I typically would avoid fee heavy loans all things equal bc that is all paid rightaway.

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