What is an APR?
Annual Percentage Rate, or APR can be defined as the annual cost of a loan, expressed as a yearly rate. APR is designed to measure the “true cost of a loan,” and to prevent lenders from hiding fees from you. Although the rules to compute APR are not clearly defined, the fees it generally includes are pre-paid interest, points, origination fees, and private mortgage insurance ( PMI), so APR will be slightly higher than the actual interest rate on the loan. However, different lenders calculate APR differently, so you want to be careful when you are shopping for your loan to make sure you understand what fees are computed. It can be more practical for you to compare lenders by the interest rate they offer for the same loan type and term, and then compare the applicable points and total closing fees.
Annual percentage rate, or APR, is essentially the cost of credit. It is the yearly amount the consumer must pay for acquiring a loan or credit. Lenders and lending agencies are required to fully disclose the APR they are offering to potential borrowers. Under this requirement, borrowers are able to compare loans and determine which are the least costly.
APR refers to Architecture Program Report. In preparation for a NAAB visit, programs prepare an APR which illustrates the ways in which the program meets the NAAB Conditions for Accreditation. Each program should have a copy of its APR available for public viewing in the school’s library, per the requirements of the Conditions. For more information on APRs, click here.
