When you’re looking at a home loan , the mortgage interest rate and the annual percentage rate (APR) are crucial factors to consider. These elements have a notable impact on the cost of financing a home, each affecting your payments in unique ways. This article delves into the meanings of these terms and their effects on home mortgage rates in Toronto . What are mortgage interest rates? Understanding the mortgage interest rate is simple. It represents the percentage of the total loan amount that you will annually pay for the opportunity to borrow money. If you obtain a mortgage with a 4% interest rate, you will pay 4% of the loan amount in interest each year. This is the fundamental expense of borrowing money. What is an annual percentage rate? When exploring financing choices, it is essential to factor in all related expenses to make well-informed decisions. The annual percentage rate (APR) includes extra costs apart from the interest on the borrowed amount, like l
