Apr is the interest rate, calculated on a yearly basis, that you pay on a loan and is dependent on the time period for which the loan is calculated.
Apr is a good starting point for narrowing down potentially attractive offers. It is a measure of the cost of credit, expressed as a yearly interest rate.
It is a term you will see on several different lending products including:
- mortgage loan.
- credit card.
- other loans.
APR is designed to help you shop for loans by making them more comparable. This numeric expression of interest rate helps save over you understand finding a small personal loan This numeric expression of interest rate is meant to provide a more complete picture of how much a loan will truly cost. Apr helps borrowers in comparing mortgage offers. Apr helps you determine how much the total cost of the mortgage or any loan will be.
APR vs Interest Rate
Apr is a measure of the cost of credit that includes loan fees paid to the lender upfront, as well as the interest rate. Apr is a mandated disclosure under truth in lending. Apr is an important and clear understanding of what your loan will cost you and is found on the truth in lending disclosure statement, which also includes an amortization schedule. Apr, a annual percentage rate, is usually higher than your interest rate. A numeric expression of interest rate, it is always higher than the nominal interest rate. Apr is a term used with regard to deposit accounts as well. Apr is one of the best ways to compare credit card offers. It can be used to provide a general idea as to what the cost of the loan will be, it should not automatically be taken to be an exact rate.