Category
What does APR mean?
Answer
APR is an abbreviation for Annual Percentage Rate. The APR describes how much the cost of the loan is per year. The purpose of calculating this Annual Percentage Rate is to give the borrower an accurate estimate of the true or actual cost of the loan. By knowing the APR the consumer can get a clearer picture – whereas without the APR there may be less obvious costs that go unnoticed. Different lenders may calculate the APR using different formulas, too, so it is a good idea to study the terms of the loan, ask any questions you may have regarding miscellaneous or disguised fees, and clarify everything until you have a complete understanding of what your mortgage will cost.
