How to Compare APR and Fees Across New Jersey Lenders

Rate vs APR: The NJ Borrower Mistake

Many NJ borrowers focus on the interest rate and ignore APR. That’s a mistake. APR includes lender fees, points, and closing costs, making it the true cost of borrowing.

Example: Two NJ Lenders

Lender A

• Rate: 6.65%
• Origination: 0.5% ($4,000 on $800K loan)
• Total fees: $5,500
• APR: 6.74%

Lender B

• Rate: 6.50% (sounds better)
• Origination: 1.5% ($12,000)
• Total fees: $14,500
• APR: 6.86%

Despite the lower rate, Lender B costs more. APR reveals the truth.

Why APR Matters More in NJ

New Jersey’s high property taxes and jumbo transactions mean borrowers often pay higher lender fees. Some lenders advertise low rates but charge large origination or discount points. APR normalizes these costs into a single number you can compare.

How to Compare Loan Estimates

Request Loan Estimates from 3–5 lenders and compare:

• APR (true cost)
• Total lender fees (origination, underwriting, processing)
• Discount points (if any)
• Closing timeline

Make sure all quotes are for the same loan amount, down payment, and term.

NJ-Specific Fee Pitfalls

• Condo loans often carry higher lender fees due to HOA review
• Jumbo loans above $806,550 can include risk-based pricing add-ons
• Portfolio lenders may charge higher origination in exchange for flexible DTI

APR Comparison Checklist

1. Get Loan Estimates within a 14-day window (one credit pull)
2. Compare APR, not just rate
3. Ask for fee breakdowns
4. Review points scenarios (0, 0.5, 1.0 points)
5. Calculate breakeven if paying points

The Bottom Line

The lowest rate isn’t always the lowest cost. In New Jersey, comparing APR and fees across multiple lenders is the best way to avoid overpaying. Always request Loan Estimates and compare APR side-by-side.

Compare NJ lenders and APR at BrowseLenders.com for transparent pricing.