The rate is the only factor that affects your monthly P&I( Principle &
Interest) payment if the loan amount does not change. The APR is affect by
both the rate and your out of pocket closing costs. The best way to compare
when you are looking for a mortgage is to compare the rate and the closing
costs that is out of your pocket.
Closing costs generally includes:
1. Lender fee
2. broker fee(if using broker)
3. Appraisal fee
4. Title related fees
5. county/state taxes, property tax and homeowner's
