The first number is called Basis Point. The second Number is the corresponding Annual Percentage Rate. There are Federal Truth In Lending Laws that require disclosure to the Consumer, or Borrower in no term other than Annual Percentage Points.
Basis Points are how people in the Banking Industry account for profit.
Annual Percentage Rate is how Borrowers account for the Cost of Debt.
This is a Prime Rate,and most likely for a 15 year Conforming loan, meaning the lender will not make any Revenue from the interest accrued and paid on the loan amount, they are forwarding the Fed rate to the borrower, at a very low Loan to Value Ratio. These loans are only for Super-Prime credit, and Properties with a lot of Equity (around 40%+)usually involve hefty points or fees so the broker and or loan officer can earn a commission.
Always ask for two quotes from each lender, with full Truth In Lending Disclosure for each...and shop it
at 6:12 AM on Sep. 29, 2009