What does annual percentage rate mean?
The annual percentage rate is also referred to as the APR. As required by the Federal Truth in Lending Law, lenders must present potential borrowers with the APR or annual cost of the mortgage. The annual percentage rate should accurately reflect the cost of obtaining and holding a mortgage for an entire year. The APR is designed as a comparison tool so that potential borrowers can select the mortgage that provides the lowest annual cost, provided that they qualify for it. What is an application fee? An application fee is the amount that a lender charges the borrower to process his mortgage application. This fee does not include all of the costs associated with obtaining a mortgage, nor does it guarantee the borrower approval for the mortgage. What does appreciation mean? Appreciation is the term used to indicate the increases in the value of a property due to fluctuations in the market or improvements and renovations. What are assets? Assets are used to refer to any property of value.
