What does APR mean?
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What does APR mean?
Annual percentage rate (APR) is the cost of credit expressed as a yearly rate. The APR includes the interest rate, points, broker fees, and certain other credit charges that the borrower is required to pay.
APR is important to you because it reflects your true
loan rate. For example, if your APR rate is considerably higher than your quoted loan rate, you
should examine your Good Faith Estimates closely
for fees. Loan origination fees, points, as well
as MIP insurance premiums go into the calculation
of APR and they reflect the actual loan rate you
are paying by financing those fees. These fees
are always negotiable, so don't be afraid to
barter!
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