APRC Explained by Mortgage Companies in Dallas

APRC Explained by Mortgage Companies in Dallas

Written by The Custom Boxes, In Home Decor, Published On
December 27, 2022

When researching different home mortgage options, you will come across a whole new set of jargon and acronyms. APRC is one such word you often see when dealing with different mortgage companies in Dallas. 


APRC is a broad concept that involves different aspects. In today’s article, we will have an in-depth look at the basics one might need to know to follow up with the process. This includes the meaning, benefits, APRC comparison with other relevant terms, and the factors that affect the home mortgage process with APRC. Because there’s so much to cover, let’s dive straight in.

APRC Meaning 

APRC stands for Annual Percentage Rate of Change. As its name suggests, APRC serves as a tool to compare different types of mortgages by showing us the full picture of their costs.


The process considers different factors, including the fees, rate of interest, and other elements, to showcase how much a particular mortgage will cost in the end. Potential homebuyers can use APRC to determine which specific lender offers the best value for their money.

Factors Taken into Consideration While Calculating APRC

Basically, three costs are directly linked to your mortgages. We’re going to list all three of them down below for you:


Interest rate


The first and most crucial factor APRC considers is your interest rate. This reflects the percentage rate of interest for the initial fixed period, which usually lasts between two and five years. 


Variable rate


Once you’re out of your fixed period, you’ll likely enter another phase of the process called the lender’s SVR. The interest rate charged during this period is often higher than the previous rate you paid in the fixed period. This usually stays constant throughout your entire mortgage term unless you plan to remortgage.




Similar to anything else, getting a mortgage also comes with its costs. All of this amount will be added to the total sum of money you have borrowed. Not to forget, you will also have to pay interest on these additional charges and fees. 

Why is APRC Useful?

The mortgage market in Dallas is overly saturated with marketers who will try their best to lure potential homebuyers and persuade them into buying a particular mortgage deal. Some of them will even come up with affordable mortgage solutions, such as low-interest payments and cashback offers. 


But as they say, all that glitter isn’t gold. Once you move forward and take different factors into consideration, especially the variable rate of interest, you may soon discover that your chosen deal is, in reality, quite expensive compared to all the other options available on the market. 


All of this can be quite confusing for first-time homebuyers and mortgage borrowers who have little knowledge about the actual home mortgage process. 


And this is exactly where APRC steps in. 


APRC serves as an effective tool that lets home buyers compare different mortgage options offered by lenders while keeping in view all the relevant details, including interest charges and fees. 

How is APRC Calculated?

As discussed above, APRC is not a standalone term. It depends on different factors, which makes it possible for the homebuyer to identify the true worth of mortgages. In order to find out the actual cost of your mortgage for the full period of your loan, you, therefore, need to have a detailed analysis and cost breakdown of interest and lender’s fees. 


You need to understand that the APRC percentages do not return viable results for situations when a homebuyer is planning to move a house or switch lenders. Thus before you consider APRC as a comparative measure, you should know the amount of time you’re planning to stay on your property. 


Apart from this, you must also consider other factors, such as the life events which will impact your living situation in the near future and more. If you’re not too sure about your stay or want to switch different mortgage options, APRC might not be a suitable tool for you to consider. 


You might also come across a few more abbreviations when shopping around for different home mortgage options. Here we are talking about the terms which sound more or less like APRC, but they differ in terms of their functionality and benefits. 


The first term on our list is APR, which stands for Annual Percentage Rate. APR works in a similar way to APRC. The only difference is APR only shows the rate of interest the homebuyer needs to pay on loan. On the other hand, APRC showcases the total cost of the loan, including the rate of interest and all other associated fees and additional charges. 


It is also very easy to get confused between APRC and AER. The latter is the short form of Annual Equivalent Rate. The term is often used to compare different savings accounts. You can calculate AER by putting your savings into an account for the entire year.

Acquiring a Loan with APRC


The amount of money you need to borrow: The general rule of thumb is the more you borrow, the lower APRC you can enjoy.  But make sure you borrow the amount you can afford to repay without having to borrow any additional money.


The length of your mortgage: The longer your mortgage period, the less you have to repay every month. 


Your credit report: Your credit report plays a crucial role in acquiring any kind of loan you have on your list. This is, in fact, one of the few things your lender will check to determine your eligibility. To get a mortgage with a low APRC, this is, therefore, essential to have a very good credit score. There are many ways to improve this, and we will soon create a separate post to help you with this. 

Final Thoughts

In conclusion, APRC is a perfect tool for comparing different mortgage options. Both seasoned investors and first-time buyers can use it to find the most appropriate mortgage option for themselves. Thank You 

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