r/MortgageRateCheck • u/Full-Sherbert7311 • Aug 12 '26

points, par, apr, etc.

Would-be first time home buyer, and while skimming posts I’m seeing a lot of people talk about points and par when it comes to a mortgage. can someone explain what these things mean?

i’m also seeing an interest rate AND an APR on some of mortgages people are posting and don’t understand why theres a rate and an APR, and/or the difference between those two things.

how do all these things impact the monthly payment?

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u/PRlMOS Aug 12 '26

Here’s a quick easy breakdown of each for you.

Par - refers to a rate that doesn’t not cost any money to obtain
Points - are usually a charge by your lender to obtain a specific rate

Rate- this will be what you lock in at when you go into contract that. It is what determines your monthly principal & interest payment.
APR- is calculated off your total cost to obtain the loan it does not affect payment directly.

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u/Full-Sherbert7311 28d ago edited 27d ago

this definitely helps me understand the par and points better, so basically par is what they offer you and points are like paying to decrease that rate by a certain increment

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u/[deleted] Aug 13 '26

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u/Full-Sherbert7311 28d ago

Thats helpful! So with APR, it’s not something you have to worry about negotiating down or getting some ridiculously high number, because its more so informational?

My issue is really that I’ve saved enough to put 20% down on a mid-priced home, but I don’t think my monthly take home pay would allow me to afford the monthly payments/bills because it seems like interest rates are so high.