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Nathan Pierce

Loan Officer

NMLS ID 12920

801-272-0600 nathan@advancedfunding.com

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Interest Rate vs Annual Percentage Rate (APR)

Interest rate and annual percentage rate (APR) - those are the same things, right? Unfortunately, too many mortgage buyers don’t realize the answer is no. The interest rate on your Utah mortgage loan is different from the APR and understanding both is important to getting the best deal on your mortgage.   Interest Rate The interest rate on a loan is the cost of borrowing the mortgage principal. It is a percentage of the amount and can be either fixed or variable. The interest rate is amortized over the life of the loan and the interest payment is rolled into the monthl...

January 10th, 2019 | Interest Rates, Mortgage Basics, Interest Rate vs Annual Percentage Rate (APR)

What You Need to Know About Mortgage Prepayment Penalties

Although they are not nearly as common today, some mortgage loans do come with a prepayment penalty. Home loan borrowers should be aware of them before signing their names on the dotted line. Here’s what you need to know about prepayment penalties:   What is a prepayment penalty? A prepayment penalty is a fee the borrower must pay if they pay off the mortgage loan faster than the agreed terms. They often only apply during the first three years of the loan. Some prepayment penalty clauses also stipulate that a borrower cannot pay off more than 20% of the loan balance each year...

December 12th, 2018 | Mortgage Basics, Home Buying or Selling, Refinance, What You Need to Know About Mortgage Prepayment Penalties

Difference Between a Mortgage Interest Rate and an APR?

What is the Difference between a mortgage interest rate and an APR? Answer: An annual percentage rate (APR) reflects the mortgage interest rate plus other charges. There are costs associated with getting a mortgage loan in Utah. These include, but not limited to: Interest Rate Discount Points Fees or Closing Costs Other charges The interest rate is the cost you will pay each year to borrow the money, expressed as a percentage rate. It does not reflect fees or any other charges you may have to pay for the loan. An ...

December 5th, 2018 | Interest Rates, Mortgage Basics, Difference Between a Mortgage Interest Rate and an APR?

Understanding Utah Interest Rates

Advertised Utah interest rates generally reflect the national average. What they may not reflect is your individual loan situation. Borrowers often believe, when they see a listing of “today’s mortgage rates,” that the listed rates accurately indicate what their home purchase or refinance loan will cost them. However, unless you obtain a personalized rate quote from a mortgage broker or mortgage lender, you have no way to accurately determine what your total borrowing costs will be.   How Mortgage Rates Affect Your Borrowing Costs In the mortgage industry, rate...

November 10th, 2018 | Mortgage Basics, Interest Rates, Understanding Utah Interest Rates

30-Year Mortgages vs 15-Year Mortgages

The majority of Utah home buyers sign up for 30-year fixed-rate mortgages (FRMs) – the staples of mortgage lending. And yet there is another option that may serve many borrowers better: the 15-year fixed-rate mortgage. Both loans include an interest rate that does not change over the course of the loan but one is paid off twice as fast as the other. Both can be financially savvy in certain situations.   Payments If you are looking for the lowest monthly payment, a 30-year FRM beats the 15-year. That is because the loan principal balance is paid off twice as slowly than the 15...

November 8th, 2018 | Interest Rates, Mortgage Basics, Loan Programs, 30-Year Mortgages vs 15-Year Mortgages

Understanding Your Credit Score

Your credit score can impact you in a number of different ways. It will affect the interest rate you pay on your mortgage, your insurance premiums, as well as the cost of consumer loans. Having a clear understanding of credit scores and knowing how to achieve the highest rating possible can help save you tens of thousands of dollars in the long run.   A credit score is a number that helps lenders determine how likely you are to make your proposed monthly payments on time.   A FICO score on a mortgage credit report will range from 300-850, and is made up of the following: &...

October 30th, 2018 | Mortgage Basics, Credit and Debt, Understanding Your Credit Score