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What is APR – Annual Percentage Rate?

April 26, 2017Annual Percentage Rate Apr

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What is APR – Annual Percentage Rate?

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APR is an interest rate that reflects the total cost of financing the loan. It is a combination of the simple interest rate, and discount points, and the fees paid to a lender when getting a mortgage. Factors that affect the APR are the loan size and the term of the loan. A mortgage with a 15 year term will have a higher APR than a 30 year mortgage, even if the rate and fees are the same. Also, A $100,000 mortgage will have a higher APR than a $200,000 mortgage, with the same rate and fees.