Ever notice the ads from a large, car manufacture owned mortgage lender with cheery music in the background offering you say 5% but with an APR of 5.29?<br /><br />Did you ever wonder what the apr is?<br /><br />Simple. They add costs to getting the loan. It’s much more expensive to get that rate from them from say, me.<br /><br />I did a 5%, 30 year fixed with an APR of 5.02% on Friday.<br /><br />The difference? The fees I charged were just the lenders costs that I was passing through ($795). To get to 5.29%, I would have to add about $5500 of costs. So, you might as well pay points and get 4.625% of so!<br /><br />Are you impressed by the quality of management and cost containment with the Big 3 auto makers? Well then why use their money (or lack of it) to get a loan and pay big fees?<br /><br />Just a thought.