What is APR?
APR is abbreviated for Annual Percentage Rate. The APR is the annual cost of the mortgage expressed in the form of a yearly rate. The APR is generally higher than the note rate because the APR includes the interest rate plus related costs such as points, fees for processing the loan and other pre-paid charges.
APR is abbreviated for Annual Percentage Rate. The APR is the annual cost of the mortgage expressed in the form of a yearly rate. The APR is generally higher than the note rate because the APR includes the interest rate plus related costs such as points, fees for processing the loan and other pre-paid charges. The APR can be used to compare the actual cost of different types of mortgages.
APR stands for Annual Percentage Rate. This is described by law and includes costs as if they were part of the interest on the loan amount. The APR can be found on the Truth in Lending Disclosure (once the loan has been applied for). Because the APR shows the overall cost of the loan as a percentage, this is the most useful number to use when comparing competing loans. APR is not used to calculated monthly payments and should not be confused with the actual interest rate (the rate is used to determine the monthly payment).
APR (Annual Percentage Rate) is the total cost to borrow money from the lender over the life of the loan, including the interest rate charged to borrow the money, closing costs and lender points. By comparing the APR to the actual interest rate, you will be able to see a true picture of what the loan is costing you. If the APR is much higher than the rate, extra closing fees or points have been charged.
