Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

How is APR calculated on Home Equity Loans and Lines of Credit?

April 26, 2017Apr calculated credit home equity Loans

0

Posted

How is APR calculated on Home Equity Loans and Lines of Credit?

1 Answer

0

Posted

When making a decision as to which loan or line is right for you, look at both the Annual Percentage Rate (APR) and other charges. Do not, however, simply compare the APRs, because the APRs on the two types of loans are figured differently. The APR for a home equity loan takes into account the interest rate charged plus points and other finance charges. The APR for a home equity line of credit is based on the periodic interest rate alone; it does not include points or other charges.