APR stands for Annual Percentage Rate and is commonly stated by Mortgage banks and lenders on the financial documents that they give to their customers. It is a yearly percentage of the interest rate charged for the money you are borrowing, plus finance charges, plus any upfront fees,it is the sum total of these items quantified in a yearly figure (percentage). Borrowers often want to know the APRs to compare lenders, but knowing just this figure is not going to give you a realistic comparison.
Watch video to find out:
- What APR means and why it is not the best comparing indicator
- What numbers you should ask your loan officer to compare lenders
There is no such thing as a good APR, it does not mean you are getting the best deal if the APR is lower with one lender compared to another. APR is required to be disclosed to you by lenders but it can be confusing if you do not know the true representation of it and how it is calculated. Don’t just base your judgement on this one figure alone, know your numbers!
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