If you're new here, you may want to subscribe to my newsletter, Family Finance Mom Weekly for updates and FREE resources! You can also find me hanging out daily on Facebook and my personal favorite, Instagram.
Please note, as an Amazon Associate and affiliate for other brands, I earn from qualifying purchases. This post may contain affiliate links or product reviews for which I may receive compensation. For more details, please see our Terms & Conditions and Privacy Policy pages. Thanks for visiting!
Welcome Back! Come hang out with me every day on Facebook and Instagram.
Please note, as an Amazon Associate and affiliate for other brands, I earn from qualifying purchases. This post may contain affiliate links or product reviews for which I may receive compensation. For more details, please see our Terms & Conditions and Privacy Policy pages. Thanks for visiting!
Definition:
APR stands for “annual percentage rate.” It is the annual rate of interest charged to a borrower, including any additional fees or financing costs associated with a transaction, but excluding any impact of compounding.
Example:
We refinanced to a 30-year mortgage with an interest rate of 2.8%, but after closing costs and origination fees, the APR was 2.95%.
More Information:
The APR is higher than the quoted interest rate due to the inclusion of fees and transaction costs and is a more accurate way of comparing loan options to find which is the most cost-effective.
If you want to account for the impact of compounding in the cost as well, please see APY (annual percentage yield).
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.OkPrivacy Policy