For most borrowers, APR makes the loan with a lower rate and higher up-front fees look best. However, this means you’ll have to come up with thousands of dollars today. You might benefit from lower monthly payments over time, but is it worth it?
You’ll know the answer if you look at the big picture. Could you put the few thousand dollars of up-front costs into an IRA or retirement plan instead and come out ahead? Is an extra $100 per month on your payment going to matter that much in 5 years?
By looking at the big picture you have a better chance of doing the right thing.
