Interest rate
The note rate determines how interest accrues and influences the principal-and-interest payment.
Mortgage comparison
Do not compare mortgages using one number.
A lower rate can come with higher upfront cost, while a higher rate may include lender credits. The best structure depends on payment, cash, time horizon, and long-term cost.
APR
APR incorporates certain finance charges but does not replace a full comparison of loan structure.
Points
Discount points increase upfront cost in exchange for different pricing.
Lender credits
Credits can reduce eligible closing costs while often being associated with a higher rate.
Mortgage insurance
PMI, FHA MIP, USDA fees, and VA funding fees can materially change program economics.
Time horizon
The expected time in the property or loan determines whether paying more upfront makes sense.