1/14    How is it that an APR can be lower than the interest rate?
        \_ if it's an ARM, initial rate(s) are higher than future adjusted
           rate(s).  I believe the quoted "interest rate" is for the year(s)
           before it starts adjusting.  APR is calculated over the life of the
           loan.
           rates, based on the reference index + spread.  I believe the quoted
           rates, based on the reference rate + spread.  I believe the quoted
           "interest rate" is for the year(s) before it starts adjusting.  APR
           is calculated over the life of the loan.
           \_ So if the rate is 6% but if the ref rate + spread = 5%, the APR
              is based on 5%+fees? Sounds like the APR is not very helpful
              wrt ARMs.
              \_ I agree.  Especially if you consider the ref rate is insanely
                 low today and can be something else in 1 to x years.  If the
                 ref rate goes insane in 2 years, you can re-fi yes, but you
                 just lost on all the fees, and the opportunity to get the
                 insanely low fixed rate.  Mr. Market loves you, then fucks
                 you in the ass.
                 \_ I know a few people whose ARMs are going flex but bc
                    LIBOR is so low, they get to keep their low rates. My
                    old roommate is about to refi to a 30 year fixed w/ Wells
                    for about 5%. Mortgage=$417k.
        \_ Another way: the mortgage company pays you points. For instance,
           if I want a 30 year fixed loan at 6.5% right now I am probably
           going to get points which will lower the APR to maybe 6.25%.