How does no closing costs relate to APR?

The APR should match the base interest rate (zero discount points). If closing costs related to lending are involved, the APR will be higher than the interest rate. However, just because a lender is offering a loan with the interest rate matching the APR does not mean the loan has no closing costs.

Our APRs do not reflect CapCenter's full savings because CapCenter waives or reduces many fees that are not typically calculated in the APR. We also showcase our base rates with low or zero closing costs while other lenders showcase rates with discount points. When choosing a lender, we recommend a comprehensive comparison that includes non-lender closing costs for a more holistic comparison.

Also, upfront costs on mortgages are not conveyed well in APRs because APRs are calculated for the life of the loan (e.g. 30 years) and high upfront costs make a small dent on the APR of a long-term loan with a high balance especially when calculated across the full loan term. Since many home owners move or refinance before the full loan term, CapCenter offers loan products with zero or low upfront costs that offer more flexibility to shorter time horizons.