Interest rates

Interest rates are impacted by many factors. Rates change often and can even change more than once throughout the day as a result of fluctuations in the financial markets.

Factors that affect rates include: type of property (primary residence, second home, investment property, multi-unit, etc), credit standing, method of transaction documentation (full doc, limited doc, no-income verification), mortgage term, and down payment amount.

We strive to provide our clients with the best rates and best terms to suit your particular needs. Please call Vanguard toll-free at 1-877-442-0909 for a personal rate quote.

Interest rate vs. A.P.R.?

Oftentimes, a mortgage borrower will see an interest rate and an Annual Percentage Rate (A.P.R.) for mortgage loans advertised.

The A.P.R. is a tool for comparing different loans, which may include different interest rates but also different points and other terms. The A.P.R. is designed to represent the "true cost of a loan" to the borrower, expressed in the form of a yearly rate. This way, lenders can't "hide" fees and upfront costs behind low advertised rates.

While it is designed to make it easier to compare loans, it is sometimes confusing because the A.P.R. includes some, but not all, of the various fees and insurance premiums that accompany a mortgage. And since the federal law that requires lenders to disclose the A.P.R. does not clearly define what goes into the calculation, A.P.R.s can vary from lender to lender and loan to loan.

Mortgage features that the A.P.R. will not tell you about include balloon payments, prepayment penalties, or how long your rate is locked. Also, the A.P.R. on a 15-year loan will carry a higher relative rate due to the fact that points are amortized over a shorter period of time.

At best, A.P.R.s are, inexact. While the A.P.R. can be a guide, there is no substitute for a thorough discussion with a mortgage professional to determine the best loan for you.