APR vs Interest Rate – I’m Confused

I’m under contract for a house. Just locked in a rate of 5.125% for 60 days. However, after the APR is calculated the amount I have to pay back at the end of 30 years is almost double (94%) what I’m borrowing. Is my lender charging too much in APR or is that normal? I never knew when people said “shop for the best rate” they meant not only the interest rate but also the APR… I signed a contract with the lender already. Should I get out of it somehow and find a new lender?

submitted by /u/honeybearbailey
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I’m under contract for a house. Just locked in a rate of 5.125% for 60 days. However, after the APR is calculated the amount I have to pay back at the end of 30 years is almost double (94%) what I’m borrowing. Is my lender charging too much in APR or is that normal? I never knew when people said “shop for the best rate” they meant not only the interest rate but also the APR… I signed a contract with the lender already. Should I get out of it somehow and find a new lender? submitted by /u/honeybearbailey [link] [comments]

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