Understanding LBI Real Estate Annual Percentage Rate
- High Tides Digital Marketing
- Jun 23, 2019
- 2 min read
Long Beach Island NJ (LBI NJ) Real Estate Market Amortization
Understanding LBI Real Estate Annual Percentage Rate
An annual percentage rate, also known as an "APR", is a value derived by a formula to reflect the true cost of borrowing money. This is expressed as a percentage that shows the true cost of the loan over the life of the loan including any fees, etc. that may be associated with it. To calculate APR all fees, any late penalties and other costs into a "bottom line" number so that a borrower can compare rates. This helps buyers understand their ownership costs in the LBI real estate market.
Annual Percentage Rates in the LBI Real Estate Market
Buying a home on Long Beach Island is a big investment and understanding the cost of ownership is a key first step to the buying process. There are many different types of loans and a buyer should investigate all options to see what makes the most sense for them. When applying for a loan in the LBI real estate market it is imperative that a buyer understand their true cost of ownership. It is for this reason that APRs came into effect. APRs are not a fool proof method of evaluation, especially in shorter term debt like an adjustable rate mortgage, so when applying for a loan a buyer should ask the lender to explain in detail the cost of the loan.
Long Beach Island Real Estate Mortgages
There are many different types of loans available in LBI real estate market. Depending on the financial situation of the buyer and the intended use, some options are better than others. For example an investor may find an interest only loan better since the intention is not to hold the property for a long period of time and the borrowing costs should be lower whereas an end user may benefit from a long term fixed rate mortgage. In any case, having an understanding LBI real estate annual percentage rates will help a buyer navigate the Long Beach Island real estate market. If you have any questions about buying, selling or investing in the LBI real estate market please do not hesitate to contact me.
By : Nathan Colmer | LBI Real Estate Agent | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
