One of the most misunderstood aspects for veterans purchasing their next home?  It’s comprehending how APR or Annual Percentage Rate impacts their monthly mortgage?

“What most people don’t understand that this doesn’t include just an interest rates but other costs and fees associated with a loan,” said Ana Almenza, the chief executive of Texas Heartland Mortgage.

Almenza said every loan rate’s APR is based upon these factors.

• The interest rate.
• Fees such as loan origination rates, discount points, mortgage broker fees and closing costs.
• The term of the loan with most loans set at 30 years.

A mortgage loan officer should help their customers understand how the “APR helps a customer compare mortgage offers” notes Almenza.

Too often, Almenza notes home buyers accept the first loan offer given to them.  She said she recommends getting at least two to three offers from lending resources.

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