If an ad does not include the APR, it does not tell you all you need to know about the cost of credit. If you see any of these phrases in an ad, find out more about the credit terms. F or many home buyers, shopping to find the best home financing is as important as shopping to find the right house. After all, a small difference in the mortgage rate can make a big difference in monthly payments.
Many consumers learn about available credit terms for new homes from newspaper advertisements.
But consumers may not know what to look for when they compare credit terms in home advertisements. Here are answers to some questions you may have about home credit advertising. There is no federal requirement that ads for homes provide information about credit terms. If an ad includes any interest rate, such as the simple interest rate or rates that apply for a limited period of time, the law requires that the annual percentage rate also be advertised. The actual cost of the credit is likely to be higher.