How to Compare Annual Percentage Rates

Do the math before you decide.

Comparing APRs

Lender A may have a slightly higher interest rate but offer lower closing costs. Lender B may have a lower interest rate, but charge more than twice the amount of closing costs, requiring you to finance this amount or pay it in cash at closing.

Lender A
Length of Loan15 yrs.
Note (interest) Rate6.25%
Loan Amount$100,000
Closing Costs$1,700
Total Financed$101,700
APR
(Actual cost of borrowing money)
6.524%
Monthly Payment$872.41
Lender B
Length of Loan15 yrs.
Note (interest) Rate6.00%
Loan Amount$100,000
Closing Costs$4,200
Total Financed$104,200
APR
(Actual cost of borrowing money)
6.656%
Monthly Payment$879.70

Questions?
Contact the PCB Lending Team
Call: 547-2436
Email: WeLoveHomeowners@paynecountybank.com