APR

The APR combines the loan’s interest rate with specific fees borne by the borrower during closing, incorporating upfront costs that Fidelity Home Group discloses in each offer. It serves as a metric to determine which loan proves more cost-effective over the entire loan duration.

Monthly Payment

The monthly payment displayed covers both principal and interest. It does not encompass private mortgage insurance [ PMI ], which your lender may necessitate if your down payment falls below 20% of the purchase price.

Points

Points represent fees remitted directly to the lender in return for a lowered interest rate. Each point equals one percent of the loan amount. Opting to pay more points upfront translates to long-term interest savings throughout the loan’s duration.

Rate

The annual cost of borrowing money, presented as a percentage. Upfront costs The initial expenses displayed are charged by the lender for initiating the loan. These charges often appear as Origination, Processing, and Underwriting fees on the Loan Estimate.