Thinking about buying a place? One thing you’ll want to pay attention to is the mortgage rate. That’s just the interest you’re being charged on your loan, and it plays a big role in what your monthly payment ends up being. It might not seem like much, but even half a percent up or down can make a big difference over the years.
So, where does that rate come from? It depends on a few things: your credit history, the kind of loan you're applying for, and what’s happening in the market at the time. Rates can shift from day to day. That’s why it helps to have someone local in your corner. At First Northern Credit Union, we take time to walk you through it all and help you find a rate that makes sense for your budget.
Now, there’s another term that tends to show up: APR, or Annual Percentage Rate. It’s often confused with the mortgage rate, but it’s a little different. APR includes extra costs like lender fees or points that might be part of the loan. While your mortgage rate affects what you pay each month, the APR gives you a sense of the full cost over the life of the loan.
You might’ve seen APR mentioned on credit card offers, and it works similarly with mortgages. But there’s more built into it here. It considers fees tied to the loan, like closing costs or discount points. That makes it helpful when comparing different options. Still, your mortgage rate is the number that shows up on your monthly bill, so it’s good to understand both.
When you're ready to talk through your options, the team at First Northern Credit Union is here to help. We don’t just offer rates. We help you understand them, compare your choices, and move forward with confidence.