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Home Equity > Annual Percentage Rate (APR)

The following information is about Annual Percentage Rate (APR).

Annual Percentage Rate (APR) Defined

The annual cost of a loan to a borrower. Like an interest rate, the APR is expressed as a percentage of the loan amount. Unlike an interest rate, however, it includes other charges or fees to reflect the total cost of the loan. The Federal Truth in Lending Act requires that every consumer loan agreement disclose the APR in large, bold print. Since all lenders must follow the same rules to ensure the accuracy of the APR, borrowers can use the APR as a good basis for comparing the cost of loans.

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Mon Jul 28

  • The Dummy Guide for Understanding APR: APR (Annual Percentage Rate) is a simple financial concept to grasp, however, calculating your... to pay when dealing with credit and loans. Taking that interest rate you receiv...

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